Correlation Between Maxigen Biotech and Pili International
Can any of the company-specific risk be diversified away by investing in both Maxigen Biotech and Pili International 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 Pili International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maxigen Biotech and Pili International Multimedia, you can compare the effects of market volatilities on Maxigen Biotech and Pili International 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 Pili International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxigen Biotech and Pili International.
Diversification Opportunities for Maxigen Biotech and Pili International
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Maxigen and Pili is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Maxigen Biotech and Pili International Multimedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pili International 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 Pili International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pili International has no effect on the direction of Maxigen Biotech i.e., Maxigen Biotech and Pili International go up and down completely randomly.
Pair Corralation between Maxigen Biotech and Pili International
Assuming the 90 days trading horizon Maxigen Biotech is expected to generate 1.88 times more return on investment than Pili International. However, Maxigen Biotech is 1.88 times more volatile than Pili International Multimedia. It trades about 0.23 of its potential returns per unit of risk. Pili International Multimedia is currently generating about -0.12 per unit of risk. If you would invest 4,720 in Maxigen Biotech on October 24, 2024 and sell it today you would earn a total of 460.00 from holding Maxigen Biotech or generate 9.75% 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. Pili International Multimedia
Performance |
| Timeline |
| Maxigen Biotech |
| Pili International |
Maxigen Biotech and Pili International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maxigen Biotech and Pili International
The main advantage of trading using opposite Maxigen Biotech and Pili International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maxigen Biotech position performs unexpectedly, Pili International 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 Pili International will offset losses from the drop in Pili International's long position.| Maxigen Biotech vs. Shan Loong Transportation Co | Maxigen Biotech vs. Chi Sheng Chemical | Maxigen Biotech vs. Hsinli Chemical Industrial | Maxigen Biotech vs. Silicon Power Computer |
| Pili International vs. Nankang Rubber Tire | Pili International vs. Hannstar Display Corp | Pili International vs. Grand Plastic Technology | Pili International vs. Yonyu Plastics Co |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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