Correlation Between Maccura Biotechnology and Shanghai Pharmaceuticals
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By analyzing existing cross correlation between Maccura Biotechnology Co and Shanghai Pharmaceuticals Holding, you can compare the effects of market volatilities on Maccura Biotechnology and Shanghai Pharmaceuticals 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 Shanghai Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maccura Biotechnology and Shanghai Pharmaceuticals.
Diversification Opportunities for Maccura Biotechnology and Shanghai Pharmaceuticals
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Maccura and Shanghai is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Maccura Biotechnology Co and Shanghai Pharmaceuticals Holdi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Pharmaceuticals 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 Shanghai Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Pharmaceuticals has no effect on the direction of Maccura Biotechnology i.e., Maccura Biotechnology and Shanghai Pharmaceuticals go up and down completely randomly.
Pair Corralation between Maccura Biotechnology and Shanghai Pharmaceuticals
Assuming the 90 days trading horizon Maccura Biotechnology Co is expected to under-perform the Shanghai Pharmaceuticals. In addition to that, Maccura Biotechnology is 1.11 times more volatile than Shanghai Pharmaceuticals Holding. It trades about -0.03 of its total potential returns per unit of risk. Shanghai Pharmaceuticals Holding is currently generating about 0.09 per unit of volatility. If you would invest 2,109 in Shanghai Pharmaceuticals Holding on September 15, 2024 and sell it today you would earn a total of 65.00 from holding Shanghai Pharmaceuticals Holding or generate 3.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maccura Biotechnology Co vs. Shanghai Pharmaceuticals Holdi
Performance |
| Timeline |
| Maccura Biotechnology |
| Shanghai Pharmaceuticals |
Maccura Biotechnology and Shanghai Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maccura Biotechnology and Shanghai Pharmaceuticals
The main advantage of trading using opposite Maccura Biotechnology and Shanghai Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maccura Biotechnology position performs unexpectedly, Shanghai Pharmaceuticals 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 Shanghai Pharmaceuticals will offset losses from the drop in Shanghai Pharmaceuticals' long position.| Maccura Biotechnology vs. China Life Insurance | Maccura Biotechnology vs. Cinda Securities Co | Maccura Biotechnology vs. Piotech Inc A | Maccura Biotechnology vs. Dongxing Sec Co |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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