Correlation Between Maccura Biotechnology and Jiangsu Yueda
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By analyzing existing cross correlation between Maccura Biotechnology Co and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Maccura Biotechnology and Jiangsu Yueda 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 Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maccura Biotechnology and Jiangsu Yueda.
Diversification Opportunities for Maccura Biotechnology and Jiangsu Yueda
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Maccura and Jiangsu is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Maccura Biotechnology Co and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment 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 Jiangsu Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of Maccura Biotechnology i.e., Maccura Biotechnology and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Maccura Biotechnology and Jiangsu Yueda
Assuming the 90 days trading horizon Maccura Biotechnology is expected to generate 1.02 times less return on investment than Jiangsu Yueda. In addition to that, Maccura Biotechnology is 1.13 times more volatile than Jiangsu Yueda Investment. It trades about 0.07 of its total potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about 0.08 per unit of volatility. If you would invest 400.00 in Jiangsu Yueda Investment on September 13, 2024 and sell it today you would earn a total of 91.00 from holding Jiangsu Yueda Investment or generate 22.75% 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. Jiangsu Yueda Investment
Performance |
| Timeline |
| Maccura Biotechnology |
| Jiangsu Yueda Investment |
Maccura Biotechnology and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maccura Biotechnology and Jiangsu Yueda
The main advantage of trading using opposite Maccura Biotechnology and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maccura Biotechnology position performs unexpectedly, Jiangsu Yueda 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 Jiangsu Yueda will offset losses from the drop in Jiangsu Yueda's 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 |
| Jiangsu Yueda vs. Lutian Machinery Co | Jiangsu Yueda vs. China Longyuan Power | Jiangsu Yueda vs. PetroChina Co Ltd | Jiangsu Yueda vs. Bank of China |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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