Correlation Between Maxigen Biotech and STL Technology
Can any of the company-specific risk be diversified away by investing in both Maxigen Biotech and STL Technology 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 STL Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maxigen Biotech and STL Technology Co, you can compare the effects of market volatilities on Maxigen Biotech and STL Technology 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 STL Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxigen Biotech and STL Technology.
Diversification Opportunities for Maxigen Biotech and STL Technology
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Maxigen and STL is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Maxigen Biotech and STL Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STL Technology 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 STL Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STL Technology has no effect on the direction of Maxigen Biotech i.e., Maxigen Biotech and STL Technology go up and down completely randomly.
Pair Corralation between Maxigen Biotech and STL Technology
Assuming the 90 days trading horizon Maxigen Biotech is expected to generate 11.45 times less return on investment than STL Technology. But when comparing it to its historical volatility, Maxigen Biotech is 1.13 times less risky than STL Technology. It trades about 0.0 of its potential returns per unit of risk. STL Technology Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,990 in STL Technology Co on September 3, 2024 and sell it today you would earn a total of 2,060 from holding STL Technology Co or generate 51.63% 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. STL Technology Co
Performance |
| Timeline |
| Maxigen Biotech |
| STL Technology |
Maxigen Biotech and STL Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maxigen Biotech and STL Technology
The main advantage of trading using opposite Maxigen Biotech and STL Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maxigen Biotech position performs unexpectedly, STL Technology 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 STL Technology will offset losses from the drop in STL Technology's long position.| Maxigen Biotech vs. Phytohealth Corp | Maxigen Biotech vs. Yung Zip Chemical | Maxigen Biotech vs. WiseChip Semiconductor | Maxigen Biotech vs. Novatek Microelectronics Corp |
| STL Technology vs. Eclat Textile Co | STL Technology vs. WiseChip Semiconductor | STL Technology vs. Novatek Microelectronics Corp | STL Technology vs. Leader Electronics |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |