Correlation Between Ma Kuang and Energenesis Biomedical
Can any of the company-specific risk be diversified away by investing in both Ma Kuang and Energenesis Biomedical at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ma Kuang and Energenesis Biomedical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ma Kuang Healthcare and Energenesis Biomedical Co, you can compare the effects of market volatilities on Ma Kuang and Energenesis Biomedical 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 Ma Kuang with a short position of Energenesis Biomedical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ma Kuang and Energenesis Biomedical.
Diversification Opportunities for Ma Kuang and Energenesis Biomedical
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 4139 and Energenesis is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Ma Kuang Healthcare and Energenesis Biomedical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energenesis Biomedical and Ma Kuang 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 Ma Kuang Healthcare are associated (or correlated) with Energenesis Biomedical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energenesis Biomedical has no effect on the direction of Ma Kuang i.e., Ma Kuang and Energenesis Biomedical go up and down completely randomly.
Pair Corralation between Ma Kuang and Energenesis Biomedical
Assuming the 90 days trading horizon Ma Kuang Healthcare is expected to under-perform the Energenesis Biomedical. But the stock apears to be less risky and, when comparing its historical volatility, Ma Kuang Healthcare is 1.25 times less risky than Energenesis Biomedical. The stock trades about -0.03 of its potential returns per unit of risk. The Energenesis Biomedical Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 6,680 in Energenesis Biomedical Co on September 12, 2024 and sell it today you would lose (1,420) from holding Energenesis Biomedical Co or give up 21.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 79.12% |
| Values | Daily Returns |
Ma Kuang Healthcare vs. Energenesis Biomedical Co
Performance |
| Timeline |
| Ma Kuang Healthcare |
| Energenesis Biomedical |
Ma Kuang and Energenesis Biomedical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ma Kuang and Energenesis Biomedical
The main advantage of trading using opposite Ma Kuang and Energenesis Biomedical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ma Kuang position performs unexpectedly, Energenesis Biomedical 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 Energenesis Biomedical will offset losses from the drop in Energenesis Biomedical's long position.| Ma Kuang vs. YuantaP shares Taiwan Top | Ma Kuang vs. YuantaP shares Taiwan Electronics | Ma Kuang vs. YuantaP shares Taiwan Mid Cap | Ma Kuang vs. Fubon MSCI Taiwan |
| Energenesis Biomedical vs. ALFORMER Industrial Co | Energenesis Biomedical vs. Fu Burg Industrial | Energenesis Biomedical vs. General Plastic Industrial | Energenesis Biomedical vs. Ma Kuang Healthcare |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |