Correlation Between Maccura Biotechnology and Fujian Wanchen
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By analyzing existing cross correlation between Maccura Biotechnology Co and Fujian Wanchen Biotechnology, you can compare the effects of market volatilities on Maccura Biotechnology and Fujian Wanchen 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 Wanchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maccura Biotechnology and Fujian Wanchen.
Diversification Opportunities for Maccura Biotechnology and Fujian Wanchen
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Maccura and Fujian is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Maccura Biotechnology Co and Fujian Wanchen Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Wanchen Biote 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 Wanchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Wanchen Biote has no effect on the direction of Maccura Biotechnology i.e., Maccura Biotechnology and Fujian Wanchen go up and down completely randomly.
Pair Corralation between Maccura Biotechnology and Fujian Wanchen
Assuming the 90 days trading horizon Maccura Biotechnology Co is expected to under-perform the Fujian Wanchen. But the stock apears to be less risky and, when comparing its historical volatility, Maccura Biotechnology Co is 2.65 times less risky than Fujian Wanchen. The stock trades about -0.08 of its potential returns per unit of risk. The Fujian Wanchen Biotechnology is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 5,989 in Fujian Wanchen Biotechnology on October 24, 2024 and sell it today you would earn a total of 3,751 from holding Fujian Wanchen Biotechnology or generate 62.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maccura Biotechnology Co vs. Fujian Wanchen Biotechnology
Performance |
| Timeline |
| Maccura Biotechnology |
| Fujian Wanchen Biote |
Maccura Biotechnology and Fujian Wanchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maccura Biotechnology and Fujian Wanchen
The main advantage of trading using opposite Maccura Biotechnology and Fujian Wanchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maccura Biotechnology position performs unexpectedly, Fujian Wanchen 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 Wanchen will offset losses from the drop in Fujian Wanchen's long position.| Maccura Biotechnology vs. BYD Co Ltd | Maccura Biotechnology vs. China Mobile Limited | Maccura Biotechnology vs. Agricultural Bank of | Maccura Biotechnology vs. Industrial and Commercial |
| Fujian Wanchen vs. Quectel Wireless Solutions | Fujian Wanchen vs. State Grid InformationCommunication | Fujian Wanchen vs. Lingyuan Iron Steel | Fujian Wanchen vs. Songz Automobile Air |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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