Correlation Between Gan Yuan and Maccura Biotechnology
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By analyzing existing cross correlation between Gan Yuan Foods and Maccura Biotechnology Co, you can compare the effects of market volatilities on Gan Yuan and Maccura Biotechnology and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Gan Yuan with a short position of Maccura Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Maccura Biotechnology.
Diversification Opportunities for Gan Yuan and Maccura Biotechnology
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gan and Maccura is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and Maccura Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maccura Biotechnology and Gan Yuan is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Gan Yuan Foods are associated (or correlated) with Maccura Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maccura Biotechnology has no effect on the direction of Gan Yuan i.e., Gan Yuan and Maccura Biotechnology go up and down completely randomly.
Pair Corralation between Gan Yuan and Maccura Biotechnology
Assuming the 90 days trading horizon Gan Yuan Foods is expected to generate 1.03 times more return on investment than Maccura Biotechnology. However, Gan Yuan is 1.03 times more volatile than Maccura Biotechnology Co. It trades about 0.19 of its potential returns per unit of risk. Maccura Biotechnology Co is currently generating about 0.04 per unit of risk. If you would invest 7,220 in Gan Yuan Foods on September 1, 2024 and sell it today you would earn a total of 638.00 from holding Gan Yuan Foods or generate 8.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Yuan Foods vs. Maccura Biotechnology Co
Performance |
| Timeline |
| Gan Yuan Foods |
| Maccura Biotechnology |
Gan Yuan and Maccura Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Maccura Biotechnology
The main advantage of trading using opposite Gan Yuan and Maccura Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, Maccura Biotechnology can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Maccura Biotechnology will offset losses from the drop in Maccura Biotechnology's long position.| Gan Yuan vs. Nanjing Putian Telecommunications | Gan Yuan vs. Shenzhen Hifuture Electric | Gan Yuan vs. Tianjin Realty Development | Gan Yuan vs. Shenyang Huitian Thermal |
| Maccura Biotechnology vs. China Life Insurance | Maccura Biotechnology vs. Cinda Securities Co | Maccura Biotechnology vs. Piotech Inc A | Maccura Biotechnology vs. Shanghai OPM Biosciences |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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