Correlation Between Maccura Biotechnology and Tongling Nonferrous
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By analyzing existing cross correlation between Maccura Biotechnology Co and Tongling Nonferrous Metals, you can compare the effects of market volatilities on Maccura Biotechnology and Tongling Nonferrous 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 Maccura Biotechnology with a short position of Tongling Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maccura Biotechnology and Tongling Nonferrous.
Diversification Opportunities for Maccura Biotechnology and Tongling Nonferrous
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Maccura and Tongling is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Maccura Biotechnology Co and Tongling Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongling Nonferrous and Maccura Biotechnology 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 Maccura Biotechnology Co are associated (or correlated) with Tongling Nonferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongling Nonferrous has no effect on the direction of Maccura Biotechnology i.e., Maccura Biotechnology and Tongling Nonferrous go up and down completely randomly.
Pair Corralation between Maccura Biotechnology and Tongling Nonferrous
Assuming the 90 days trading horizon Maccura Biotechnology Co is expected to under-perform the Tongling Nonferrous. In addition to that, Maccura Biotechnology is 1.33 times more volatile than Tongling Nonferrous Metals. It trades about -0.27 of its total potential returns per unit of risk. Tongling Nonferrous Metals is currently generating about -0.04 per unit of volatility. If you would invest 331.00 in Tongling Nonferrous Metals on October 30, 2024 and sell it today you would lose (4.00) from holding Tongling Nonferrous Metals or give up 1.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maccura Biotechnology Co vs. Tongling Nonferrous Metals
Performance |
| Timeline |
| Maccura Biotechnology |
| Tongling Nonferrous |
Maccura Biotechnology and Tongling Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maccura Biotechnology and Tongling Nonferrous
The main advantage of trading using opposite Maccura Biotechnology and Tongling Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maccura Biotechnology position performs unexpectedly, Tongling Nonferrous 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 Tongling Nonferrous will offset losses from the drop in Tongling Nonferrous' long position.| Maccura Biotechnology vs. Agricultural Bank of | Maccura Biotechnology vs. Industrial and Commercial | Maccura Biotechnology vs. Bank of China | Maccura Biotechnology vs. PetroChina Co Ltd |
| Tongling Nonferrous vs. Zijin Mining Group | Tongling Nonferrous vs. Wanhua Chemical Group | Tongling Nonferrous vs. Baoshan Iron Steel | Tongling Nonferrous vs. Shandong Gold Mining |
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.
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