Correlation Between Maxigen Biotech and New Advanced
Can any of the company-specific risk be diversified away by investing in both Maxigen Biotech and New Advanced 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 New Advanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maxigen Biotech and New Advanced Electronics, you can compare the effects of market volatilities on Maxigen Biotech and New Advanced 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 New Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxigen Biotech and New Advanced.
Diversification Opportunities for Maxigen Biotech and New Advanced
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maxigen and New is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Maxigen Biotech and New Advanced Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Advanced Electronics 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 New Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Advanced Electronics has no effect on the direction of Maxigen Biotech i.e., Maxigen Biotech and New Advanced go up and down completely randomly.
Pair Corralation between Maxigen Biotech and New Advanced
Assuming the 90 days trading horizon Maxigen Biotech is expected to generate 0.72 times more return on investment than New Advanced. However, Maxigen Biotech is 1.39 times less risky than New Advanced. It trades about 0.42 of its potential returns per unit of risk. New Advanced Electronics is currently generating about -0.09 per unit of risk. If you would invest 4,270 in Maxigen Biotech on September 13, 2024 and sell it today you would earn a total of 595.00 from holding Maxigen Biotech or generate 13.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maxigen Biotech vs. New Advanced Electronics
Performance |
| Timeline |
| Maxigen Biotech |
| New Advanced Electronics |
Maxigen Biotech and New Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maxigen Biotech and New Advanced
The main advantage of trading using opposite Maxigen Biotech and New Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maxigen Biotech position performs unexpectedly, New Advanced 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 New Advanced will offset losses from the drop in New Advanced's long position.| Maxigen Biotech vs. Phytohealth Corp | Maxigen Biotech vs. Yung Zip Chemical | Maxigen Biotech vs. Ruentex Development Co | Maxigen Biotech vs. Symtek Automation Asia |
| New Advanced vs. Holiday Entertainment Co | New Advanced vs. Posiflex Technology | New Advanced vs. United Radiant Technology | New Advanced vs. Chicony Power Technology |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |