Correlation Between Maccura Biotechnology and Hainan Haiqi
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By analyzing existing cross correlation between Maccura Biotechnology Co and Hainan Haiqi Transportation, you can compare the effects of market volatilities on Maccura Biotechnology and Hainan Haiqi 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 Hainan Haiqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maccura Biotechnology and Hainan Haiqi.
Diversification Opportunities for Maccura Biotechnology and Hainan Haiqi
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Maccura and Hainan is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Maccura Biotechnology Co and Hainan Haiqi Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Haiqi Transpo 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 Hainan Haiqi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Haiqi Transpo has no effect on the direction of Maccura Biotechnology i.e., Maccura Biotechnology and Hainan Haiqi go up and down completely randomly.
Pair Corralation between Maccura Biotechnology and Hainan Haiqi
Assuming the 90 days trading horizon Maccura Biotechnology Co is expected to under-perform the Hainan Haiqi. But the stock apears to be less risky and, when comparing its historical volatility, Maccura Biotechnology Co is 1.33 times less risky than Hainan Haiqi. The stock trades about -0.02 of its potential returns per unit of risk. The Hainan Haiqi Transportation is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,946 in Hainan Haiqi Transportation on September 3, 2024 and sell it today you would lose (930.00) from holding Hainan Haiqi Transportation or give up 31.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maccura Biotechnology Co vs. Hainan Haiqi Transportation
Performance |
| Timeline |
| Maccura Biotechnology |
| Hainan Haiqi Transpo |
Maccura Biotechnology and Hainan Haiqi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maccura Biotechnology and Hainan Haiqi
The main advantage of trading using opposite Maccura Biotechnology and Hainan Haiqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maccura Biotechnology position performs unexpectedly, Hainan Haiqi 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 Hainan Haiqi will offset losses from the drop in Hainan Haiqi's long position.The idea behind Maccura Biotechnology Co and Hainan Haiqi Transportation pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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