Correlation Between Maccura Biotechnology and Nanning Chemical
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By analyzing existing cross correlation between Maccura Biotechnology Co and Nanning Chemical Industry, you can compare the effects of market volatilities on Maccura Biotechnology and Nanning Chemical 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 Nanning Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maccura Biotechnology and Nanning Chemical.
Diversification Opportunities for Maccura Biotechnology and Nanning Chemical
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Maccura and Nanning is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Maccura Biotechnology Co and Nanning Chemical Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanning Chemical Industry 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 Nanning Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanning Chemical Industry has no effect on the direction of Maccura Biotechnology i.e., Maccura Biotechnology and Nanning Chemical go up and down completely randomly.
Pair Corralation between Maccura Biotechnology and Nanning Chemical
Assuming the 90 days trading horizon Maccura Biotechnology Co is expected to under-perform the Nanning Chemical. But the stock apears to be less risky and, when comparing its historical volatility, Maccura Biotechnology Co is 1.14 times less risky than Nanning Chemical. The stock trades about -0.38 of its potential returns per unit of risk. The Nanning Chemical Industry is currently generating about -0.25 of returns per unit of risk over similar time horizon. If you would invest 1,907 in Nanning Chemical Industry on October 11, 2024 and sell it today you would lose (179.00) from holding Nanning Chemical Industry or give up 9.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Maccura Biotechnology Co vs. Nanning Chemical Industry
Performance |
| Timeline |
| Maccura Biotechnology |
| Nanning Chemical Industry |
Maccura Biotechnology and Nanning Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maccura Biotechnology and Nanning Chemical
The main advantage of trading using opposite Maccura Biotechnology and Nanning Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maccura Biotechnology position performs unexpectedly, Nanning Chemical 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 Nanning Chemical will offset losses from the drop in Nanning Chemical'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 |
| Nanning Chemical vs. Chengdu Xinzhu RoadBridge | Nanning Chemical vs. Shanghai Newtouch Software | Nanning Chemical vs. Anhui Transport Consulting | Nanning Chemical vs. Hainan Haiqi Transportation |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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