Correlation Between Maccura Biotechnology and Fujian Longzhou
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By analyzing existing cross correlation between Maccura Biotechnology Co and Fujian Longzhou Transportation, you can compare the effects of market volatilities on Maccura Biotechnology and Fujian Longzhou 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 Fujian Longzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maccura Biotechnology and Fujian Longzhou.
Diversification Opportunities for Maccura Biotechnology and Fujian Longzhou
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Maccura and Fujian is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Maccura Biotechnology Co and Fujian Longzhou Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Longzhou Tran 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 Fujian Longzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Longzhou Tran has no effect on the direction of Maccura Biotechnology i.e., Maccura Biotechnology and Fujian Longzhou go up and down completely randomly.
Pair Corralation between Maccura Biotechnology and Fujian Longzhou
Assuming the 90 days trading horizon Maccura Biotechnology Co is expected to generate 0.42 times more return on investment than Fujian Longzhou. However, Maccura Biotechnology Co is 2.36 times less risky than Fujian Longzhou. It trades about -0.21 of its potential returns per unit of risk. Fujian Longzhou Transportation is currently generating about -0.13 per unit of risk. If you would invest 1,477 in Maccura Biotechnology Co on October 11, 2024 and sell it today you would lose (218.00) from holding Maccura Biotechnology Co or give up 14.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maccura Biotechnology Co vs. Fujian Longzhou Transportation
Performance |
| Timeline |
| Maccura Biotechnology |
| Fujian Longzhou Tran |
Maccura Biotechnology and Fujian Longzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maccura Biotechnology and Fujian Longzhou
The main advantage of trading using opposite Maccura Biotechnology and Fujian Longzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maccura Biotechnology position performs unexpectedly, Fujian Longzhou 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 Fujian Longzhou will offset losses from the drop in Fujian Longzhou's long position.| Maccura Biotechnology vs. Suzhou Industrial Park | Maccura Biotechnology vs. Guosheng Financial Holding | Maccura Biotechnology vs. Guangzhou Haozhi Industrial | Maccura Biotechnology vs. Qilu Bank Co |
| Fujian Longzhou vs. AVCON Information Tech | Fujian Longzhou vs. CITIC Guoan Information | Fujian Longzhou vs. Sublime China Information | Fujian Longzhou vs. Digital China Information |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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