Correlation Between Maccura Biotechnology and Liaoning Chengda
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By analyzing existing cross correlation between Maccura Biotechnology Co and Liaoning Chengda Biotechnology, you can compare the effects of market volatilities on Maccura Biotechnology and Liaoning Chengda 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 Liaoning Chengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maccura Biotechnology and Liaoning Chengda.
Diversification Opportunities for Maccura Biotechnology and Liaoning Chengda
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Maccura and Liaoning is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Maccura Biotechnology Co and Liaoning Chengda Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liaoning Chengda Bio 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 Liaoning Chengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liaoning Chengda Bio has no effect on the direction of Maccura Biotechnology i.e., Maccura Biotechnology and Liaoning Chengda go up and down completely randomly.
Pair Corralation between Maccura Biotechnology and Liaoning Chengda
Assuming the 90 days trading horizon Maccura Biotechnology is expected to generate 1.06 times less return on investment than Liaoning Chengda. In addition to that, Maccura Biotechnology is 1.25 times more volatile than Liaoning Chengda Biotechnology. It trades about 0.03 of its total potential returns per unit of risk. Liaoning Chengda Biotechnology is currently generating about 0.04 per unit of volatility. If you would invest 2,384 in Liaoning Chengda Biotechnology on November 3, 2024 and sell it today you would earn a total of 206.00 from holding Liaoning Chengda Biotechnology or generate 8.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maccura Biotechnology Co vs. Liaoning Chengda Biotechnology
Performance |
| Timeline |
| Maccura Biotechnology |
| Liaoning Chengda Bio |
Maccura Biotechnology and Liaoning Chengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maccura Biotechnology and Liaoning Chengda
The main advantage of trading using opposite Maccura Biotechnology and Liaoning Chengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maccura Biotechnology position performs unexpectedly, Liaoning Chengda 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 Liaoning Chengda will offset losses from the drop in Liaoning Chengda's long position.| Maccura Biotechnology vs. PetroChina Co Ltd | Maccura Biotechnology vs. China Railway Construction | Maccura Biotechnology vs. China Mobile Limited | Maccura Biotechnology vs. Industrial and Commercial |
| Liaoning Chengda vs. PetroChina Co Ltd | Liaoning Chengda vs. China Railway Construction | Liaoning Chengda vs. China Mobile Limited | Liaoning Chengda vs. Industrial and Commercial |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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