Correlation Between Maxigen Biotech and Icares Medicus
Can any of the company-specific risk be diversified away by investing in both Maxigen Biotech and Icares Medicus 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 Icares Medicus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maxigen Biotech and Icares Medicus, you can compare the effects of market volatilities on Maxigen Biotech and Icares Medicus 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 Icares Medicus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxigen Biotech and Icares Medicus.
Diversification Opportunities for Maxigen Biotech and Icares Medicus
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Maxigen and Icares is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Maxigen Biotech and Icares Medicus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icares Medicus 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 Icares Medicus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icares Medicus has no effect on the direction of Maxigen Biotech i.e., Maxigen Biotech and Icares Medicus go up and down completely randomly.
Pair Corralation between Maxigen Biotech and Icares Medicus
Assuming the 90 days trading horizon Maxigen Biotech is expected to generate 0.95 times more return on investment than Icares Medicus. However, Maxigen Biotech is 1.05 times less risky than Icares Medicus. It trades about 0.33 of its potential returns per unit of risk. Icares Medicus is currently generating about 0.02 per unit of risk. If you would invest 4,595 in Maxigen Biotech on October 9, 2024 and sell it today you would earn a total of 485.00 from holding Maxigen Biotech or generate 10.55% 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. Icares Medicus
Performance |
Timeline |
Maxigen Biotech |
Icares Medicus |
Maxigen Biotech and Icares Medicus Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Maxigen Biotech and Icares Medicus
The main advantage of trading using opposite Maxigen Biotech and Icares Medicus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maxigen Biotech position performs unexpectedly, Icares Medicus 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 Icares Medicus will offset losses from the drop in Icares Medicus' long position.Maxigen Biotech vs. Phytohealth Corp | Maxigen Biotech vs. Yung Zip Chemical | Maxigen Biotech vs. Information Technology Total | Maxigen Biotech vs. Kinko Optical Co |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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