Correlation Between Ningbo Fangzheng and Maccura Biotechnology
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By analyzing existing cross correlation between Ningbo Fangzheng Automobile and Maccura Biotechnology Co, you can compare the effects of market volatilities on Ningbo Fangzheng 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 Ningbo Fangzheng with a short position of Maccura Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fangzheng and Maccura Biotechnology.
Diversification Opportunities for Ningbo Fangzheng and Maccura Biotechnology
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Maccura is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fangzheng Automobile and Maccura Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maccura Biotechnology and Ningbo Fangzheng 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 Ningbo Fangzheng Automobile 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 Ningbo Fangzheng i.e., Ningbo Fangzheng and Maccura Biotechnology go up and down completely randomly.
Pair Corralation between Ningbo Fangzheng and Maccura Biotechnology
Assuming the 90 days trading horizon Ningbo Fangzheng Automobile is expected to generate 1.82 times more return on investment than Maccura Biotechnology. However, Ningbo Fangzheng is 1.82 times more volatile than Maccura Biotechnology Co. It trades about 0.0 of its potential returns per unit of risk. Maccura Biotechnology Co is currently generating about -0.15 per unit of risk. If you would invest 1,547 in Ningbo Fangzheng Automobile on November 6, 2024 and sell it today you would lose (52.00) from holding Ningbo Fangzheng Automobile or give up 3.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Fangzheng Automobile vs. Maccura Biotechnology Co
Performance |
| Timeline |
| Ningbo Fangzheng Aut |
| Maccura Biotechnology |
Ningbo Fangzheng and Maccura Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fangzheng and Maccura Biotechnology
The main advantage of trading using opposite Ningbo Fangzheng and Maccura Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fangzheng 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.| Ningbo Fangzheng vs. Shanghai Ziyan Foods | Ningbo Fangzheng vs. Xiangpiaopiao Food Co | Ningbo Fangzheng vs. Wangneng Environment Co | Ningbo Fangzheng vs. Grandblue Environment 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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