Correlation Between Shenzhen Bioeasy and Maccura Biotechnology
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By analyzing existing cross correlation between Shenzhen Bioeasy Biotechnology and Maccura Biotechnology Co, you can compare the effects of market volatilities on Shenzhen Bioeasy and Maccura Biotechnology 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 Shenzhen Bioeasy with a short position of Maccura Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bioeasy and Maccura Biotechnology.
Diversification Opportunities for Shenzhen Bioeasy and Maccura Biotechnology
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Maccura is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bioeasy Biotechnology and Maccura Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maccura Biotechnology and Shenzhen Bioeasy 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 Shenzhen Bioeasy Biotechnology are associated (or correlated) with Maccura Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maccura Biotechnology has no effect on the direction of Shenzhen Bioeasy i.e., Shenzhen Bioeasy and Maccura Biotechnology go up and down completely randomly.
Pair Corralation between Shenzhen Bioeasy and Maccura Biotechnology
Assuming the 90 days trading horizon Shenzhen Bioeasy Biotechnology is expected to generate 1.39 times more return on investment than Maccura Biotechnology. However, Shenzhen Bioeasy is 1.39 times more volatile than Maccura Biotechnology Co. It trades about 0.01 of its potential returns per unit of risk. Maccura Biotechnology Co is currently generating about -0.01 per unit of risk. If you would invest 848.00 in Shenzhen Bioeasy Biotechnology on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Shenzhen Bioeasy Biotechnology or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bioeasy Biotechnology vs. Maccura Biotechnology Co
Performance |
| Timeline |
| Shenzhen Bioeasy Bio |
| Maccura Biotechnology |
Shenzhen Bioeasy and Maccura Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bioeasy and Maccura Biotechnology
The main advantage of trading using opposite Shenzhen Bioeasy and Maccura Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bioeasy position performs unexpectedly, Maccura Biotechnology 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 Maccura Biotechnology will offset losses from the drop in Maccura Biotechnology's long position.| Shenzhen Bioeasy vs. China State Construction | Shenzhen Bioeasy vs. Poly Real Estate | Shenzhen Bioeasy vs. China Vanke Co | Shenzhen Bioeasy vs. China Merchants Shekou |
| Maccura Biotechnology vs. Offshore Oil Engineering | Maccura Biotechnology vs. Hunan Investment Group | Maccura Biotechnology vs. Ping An Insurance | Maccura Biotechnology vs. Vanfund Urban Investment |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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