Correlation Between Maccura Biotechnology and Dongnan Electronics
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By analyzing existing cross correlation between Maccura Biotechnology Co and Dongnan Electronics Co, you can compare the effects of market volatilities on Maccura Biotechnology and Dongnan Electronics 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 Dongnan Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maccura Biotechnology and Dongnan Electronics.
Diversification Opportunities for Maccura Biotechnology and Dongnan Electronics
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Maccura and Dongnan is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Maccura Biotechnology Co and Dongnan Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongnan Electronics 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 Dongnan Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongnan Electronics has no effect on the direction of Maccura Biotechnology i.e., Maccura Biotechnology and Dongnan Electronics go up and down completely randomly.
Pair Corralation between Maccura Biotechnology and Dongnan Electronics
Assuming the 90 days trading horizon Maccura Biotechnology Co is expected to under-perform the Dongnan Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Maccura Biotechnology Co is 1.39 times less risky than Dongnan Electronics. The stock trades about -0.13 of its potential returns per unit of risk. The Dongnan Electronics Co is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 2,653 in Dongnan Electronics Co on September 13, 2024 and sell it today you would lose (85.00) from holding Dongnan Electronics Co or give up 3.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maccura Biotechnology Co vs. Dongnan Electronics Co
Performance |
| Timeline |
| Maccura Biotechnology |
| Dongnan Electronics |
Maccura Biotechnology and Dongnan Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maccura Biotechnology and Dongnan Electronics
The main advantage of trading using opposite Maccura Biotechnology and Dongnan Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maccura Biotechnology position performs unexpectedly, Dongnan Electronics 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 Dongnan Electronics will offset losses from the drop in Dongnan Electronics' long position.| Maccura Biotechnology vs. Guangzhou Restaurants Group | Maccura Biotechnology vs. Hunan Investment Group | Maccura Biotechnology vs. Changchun Faway Automobile | Maccura Biotechnology vs. CSSC Offshore Marine |
| Dongnan Electronics vs. Mingchen Health Co | Dongnan Electronics vs. Shenzhen Silver Basis | Dongnan Electronics vs. Lotus Health Group | Dongnan Electronics vs. Hangzhou Coco Healthcare |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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