Correlation Between Dongnan Electronics and Maccura Biotechnology
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By analyzing existing cross correlation between Dongnan Electronics Co and Maccura Biotechnology Co, you can compare the effects of market volatilities on Dongnan Electronics 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 Dongnan Electronics with a short position of Maccura Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongnan Electronics and Maccura Biotechnology.
Diversification Opportunities for Dongnan Electronics and Maccura Biotechnology
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dongnan and Maccura is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Dongnan Electronics Co and Maccura Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maccura Biotechnology and Dongnan Electronics 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 Dongnan Electronics Co 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 Dongnan Electronics i.e., Dongnan Electronics and Maccura Biotechnology go up and down completely randomly.
Pair Corralation between Dongnan Electronics and Maccura Biotechnology
Assuming the 90 days trading horizon Dongnan Electronics Co is expected to generate 1.39 times more return on investment than Maccura Biotechnology. However, Dongnan Electronics is 1.39 times more volatile than Maccura Biotechnology Co. It trades about -0.05 of its potential returns per unit of risk. Maccura Biotechnology Co is currently generating about -0.13 per unit of risk. If you would invest 2,653 in Dongnan Electronics Co on September 13, 2024 and sell it today you would lose (85.00) from holding Dongnan Electronics Co or give up 3.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongnan Electronics Co vs. Maccura Biotechnology Co
Performance |
| Timeline |
| Dongnan Electronics |
| Maccura Biotechnology |
Dongnan Electronics and Maccura Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongnan Electronics and Maccura Biotechnology
The main advantage of trading using opposite Dongnan Electronics and Maccura Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongnan Electronics 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.| Dongnan Electronics vs. Mingchen Health Co | Dongnan Electronics vs. Shenzhen Silver Basis | Dongnan Electronics vs. Lotus Health Group | Dongnan Electronics vs. Hangzhou Coco Healthcare |
| Maccura Biotechnology vs. Guangzhou Restaurants Group | Maccura Biotechnology vs. Hunan Investment Group | Maccura Biotechnology vs. Changchun Faway Automobile | Maccura Biotechnology vs. CSSC Offshore Marine |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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