Correlation Between Maccura Biotechnology and Henan Lantian
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By analyzing existing cross correlation between Maccura Biotechnology Co and Henan Lantian Gas, you can compare the effects of market volatilities on Maccura Biotechnology and Henan Lantian 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 Henan Lantian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maccura Biotechnology and Henan Lantian.
Diversification Opportunities for Maccura Biotechnology and Henan Lantian
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maccura and Henan is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Maccura Biotechnology Co and Henan Lantian Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Lantian Gas 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 Henan Lantian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Lantian Gas has no effect on the direction of Maccura Biotechnology i.e., Maccura Biotechnology and Henan Lantian go up and down completely randomly.
Pair Corralation between Maccura Biotechnology and Henan Lantian
Assuming the 90 days trading horizon Maccura Biotechnology Co is expected to under-perform the Henan Lantian. In addition to that, Maccura Biotechnology is 1.31 times more volatile than Henan Lantian Gas. It trades about -0.01 of its total potential returns per unit of risk. Henan Lantian Gas is currently generating about -0.01 per unit of volatility. If you would invest 1,149 in Henan Lantian Gas on September 19, 2024 and sell it today you would lose (6.00) from holding Henan Lantian Gas or give up 0.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Maccura Biotechnology Co vs. Henan Lantian Gas
Performance |
| Timeline |
| Maccura Biotechnology |
| Henan Lantian Gas |
Maccura Biotechnology and Henan Lantian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maccura Biotechnology and Henan Lantian
The main advantage of trading using opposite Maccura Biotechnology and Henan Lantian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maccura Biotechnology position performs unexpectedly, Henan Lantian 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 Henan Lantian will offset losses from the drop in Henan Lantian's 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 |
| Henan Lantian vs. Liaoning Chengda Biotechnology | Henan Lantian vs. Bloomage Biotechnology Corp | Henan Lantian vs. Xiandai Investment Co | Henan Lantian vs. Maccura Biotechnology 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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