Correlation Between Maccura Biotechnology and Kuangda Technology
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By analyzing existing cross correlation between Maccura Biotechnology Co and Kuangda Technology Group, you can compare the effects of market volatilities on Maccura Biotechnology and Kuangda 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 Maccura Biotechnology with a short position of Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maccura Biotechnology and Kuangda Technology.
Diversification Opportunities for Maccura Biotechnology and Kuangda Technology
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Maccura and Kuangda is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Maccura Biotechnology Co and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology 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 Kuangda Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuangda Technology has no effect on the direction of Maccura Biotechnology i.e., Maccura Biotechnology and Kuangda Technology go up and down completely randomly.
Pair Corralation between Maccura Biotechnology and Kuangda Technology
Assuming the 90 days trading horizon Maccura Biotechnology is expected to generate 1.83 times less return on investment than Kuangda Technology. But when comparing it to its historical volatility, Maccura Biotechnology Co is 1.05 times less risky than Kuangda Technology. It trades about 0.11 of its potential returns per unit of risk. Kuangda Technology Group is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 365.00 in Kuangda Technology Group on August 25, 2024 and sell it today you would earn a total of 163.00 from holding Kuangda Technology Group or generate 44.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maccura Biotechnology Co vs. Kuangda Technology Group
Performance |
| Timeline |
| Maccura Biotechnology |
| Kuangda Technology |
Maccura Biotechnology and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maccura Biotechnology and Kuangda Technology
The main advantage of trading using opposite Maccura Biotechnology and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maccura Biotechnology position performs unexpectedly, Kuangda 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 Kuangda Technology will offset losses from the drop in Kuangda Technology's long position.The idea behind Maccura Biotechnology Co and Kuangda Technology Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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