Correlation Between Maxigen Biotech and Chi Sheng
Can any of the company-specific risk be diversified away by investing in both Maxigen Biotech and Chi Sheng 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 Chi Sheng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maxigen Biotech and Chi Sheng Chemical, you can compare the effects of market volatilities on Maxigen Biotech and Chi Sheng 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 Chi Sheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxigen Biotech and Chi Sheng.
Diversification Opportunities for Maxigen Biotech and Chi Sheng
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Maxigen and Chi is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Maxigen Biotech and Chi Sheng Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chi Sheng Chemical 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 Chi Sheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chi Sheng Chemical has no effect on the direction of Maxigen Biotech i.e., Maxigen Biotech and Chi Sheng go up and down completely randomly.
Pair Corralation between Maxigen Biotech and Chi Sheng
Assuming the 90 days trading horizon Maxigen Biotech is expected to generate 1.3 times less return on investment than Chi Sheng. In addition to that, Maxigen Biotech is 1.85 times more volatile than Chi Sheng Chemical. It trades about 0.11 of its total potential returns per unit of risk. Chi Sheng Chemical is currently generating about 0.27 per unit of volatility. If you would invest 2,625 in Chi Sheng Chemical on August 30, 2024 and sell it today you would earn a total of 125.00 from holding Chi Sheng Chemical or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Maxigen Biotech vs. Chi Sheng Chemical
Performance |
| Timeline |
| Maxigen Biotech |
| Chi Sheng Chemical |
Maxigen Biotech and Chi Sheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maxigen Biotech and Chi Sheng
The main advantage of trading using opposite Maxigen Biotech and Chi Sheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maxigen Biotech position performs unexpectedly, Chi Sheng 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 Chi Sheng will offset losses from the drop in Chi Sheng's long position.| Maxigen Biotech vs. Phytohealth Corp | Maxigen Biotech vs. Yung Zip Chemical | Maxigen Biotech vs. Leatec Fine Ceramics | Maxigen Biotech vs. Information Technology Total |
| Chi Sheng vs. Maxigen Biotech | Chi Sheng vs. Chunghwa Chemical Synthesis | Chi Sheng vs. Sinphar Pharmaceutical Co | Chi Sheng vs. ScinoPharm Taiwan |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Commodity Directory Find actively traded commodities issued by global exchanges |