Correlation Between Maxigen Biotech and Apex Biotechnology
Can any of the company-specific risk be diversified away by investing in both Maxigen Biotech and Apex Biotechnology at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Maxigen Biotech and Apex Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maxigen Biotech and Apex Biotechnology Corp, you can compare the effects of market volatilities on Maxigen Biotech and Apex 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 Maxigen Biotech with a short position of Apex Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxigen Biotech and Apex Biotechnology.
Diversification Opportunities for Maxigen Biotech and Apex Biotechnology
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Maxigen and Apex is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Maxigen Biotech and Apex Biotechnology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apex Biotechnology Corp and Maxigen Biotech 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 Maxigen Biotech are associated (or correlated) with Apex Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apex Biotechnology Corp has no effect on the direction of Maxigen Biotech i.e., Maxigen Biotech and Apex Biotechnology go up and down completely randomly.
Pair Corralation between Maxigen Biotech and Apex Biotechnology
Assuming the 90 days trading horizon Maxigen Biotech is expected to generate 3.14 times more return on investment than Apex Biotechnology. However, Maxigen Biotech is 3.14 times more volatile than Apex Biotechnology Corp. It trades about 0.17 of its potential returns per unit of risk. Apex Biotechnology Corp is currently generating about 0.19 per unit of risk. If you would invest 4,690 in Maxigen Biotech on October 26, 2024 and sell it today you would earn a total of 340.00 from holding Maxigen Biotech or generate 7.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maxigen Biotech vs. Apex Biotechnology Corp
Performance |
| Timeline |
| Maxigen Biotech |
| Apex Biotechnology Corp |
Maxigen Biotech and Apex Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maxigen Biotech and Apex Biotechnology
The main advantage of trading using opposite Maxigen Biotech and Apex Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maxigen Biotech position performs unexpectedly, Apex 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 Apex Biotechnology will offset losses from the drop in Apex Biotechnology's long position.| Maxigen Biotech vs. Microelectronics Technology | Maxigen Biotech vs. Loop Telecommunication International | Maxigen Biotech vs. Thinking Electronic Industrial | Maxigen Biotech vs. Tung Thih Electronic |
| Apex Biotechnology vs. CHC Healthcare Group | Apex Biotechnology vs. GenMont Biotech | Apex Biotechnology vs. Sinphar Pharmaceutical Co | Apex Biotechnology vs. Abnova Taiwan Corp |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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