Correlation Between Maxigen Biotech and Tainet Communication
Can any of the company-specific risk be diversified away by investing in both Maxigen Biotech and Tainet Communication 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 Tainet Communication into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maxigen Biotech and Tainet Communication System, you can compare the effects of market volatilities on Maxigen Biotech and Tainet Communication 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 Tainet Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxigen Biotech and Tainet Communication.
Diversification Opportunities for Maxigen Biotech and Tainet Communication
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Maxigen and Tainet is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Maxigen Biotech and Tainet Communication System in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tainet Communication 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 Tainet Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tainet Communication has no effect on the direction of Maxigen Biotech i.e., Maxigen Biotech and Tainet Communication go up and down completely randomly.
Pair Corralation between Maxigen Biotech and Tainet Communication
Assuming the 90 days trading horizon Maxigen Biotech is expected to generate 1.38 times more return on investment than Tainet Communication. However, Maxigen Biotech is 1.38 times more volatile than Tainet Communication System. It trades about 0.18 of its potential returns per unit of risk. Tainet Communication System is currently generating about -0.05 per unit of risk. If you would invest 4,460 in Maxigen Biotech on October 30, 2024 and sell it today you would earn a total of 570.00 from holding Maxigen Biotech or generate 12.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maxigen Biotech vs. Tainet Communication System
Performance |
| Timeline |
| Maxigen Biotech |
| Tainet Communication |
Maxigen Biotech and Tainet Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maxigen Biotech and Tainet Communication
The main advantage of trading using opposite Maxigen Biotech and Tainet Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maxigen Biotech position performs unexpectedly, Tainet Communication 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 Tainet Communication will offset losses from the drop in Tainet Communication's long position.| Maxigen Biotech vs. Phytohealth Corp | Maxigen Biotech vs. tsh biopharmoration | Maxigen Biotech vs. Yung Zip Chemical |
| Tainet Communication vs. Asustek Computer | Tainet Communication vs. TWOWAY Communications | Tainet Communication vs. Emerging Display Technologies | Tainet Communication vs. Elitegroup Computer Systems |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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