Correlation Between Long Yuan and Maccura Biotechnology
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By analyzing existing cross correlation between Long Yuan Construction and Maccura Biotechnology Co, you can compare the effects of market volatilities on Long Yuan 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 Long Yuan with a short position of Maccura Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Long Yuan and Maccura Biotechnology.
Diversification Opportunities for Long Yuan and Maccura Biotechnology
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Long and Maccura is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Long Yuan Construction and Maccura Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maccura Biotechnology and Long Yuan 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 Long Yuan Construction 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 Long Yuan i.e., Long Yuan and Maccura Biotechnology go up and down completely randomly.
Pair Corralation between Long Yuan and Maccura Biotechnology
Assuming the 90 days trading horizon Long Yuan Construction is expected to generate 1.83 times more return on investment than Maccura Biotechnology. However, Long Yuan is 1.83 times more volatile than Maccura Biotechnology Co. It trades about 0.07 of its potential returns per unit of risk. Maccura Biotechnology Co is currently generating about 0.05 per unit of risk. If you would invest 391.00 in Long Yuan Construction on September 4, 2024 and sell it today you would earn a total of 16.00 from holding Long Yuan Construction or generate 4.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Long Yuan Construction vs. Maccura Biotechnology Co
Performance |
| Timeline |
| Long Yuan Construction |
| Maccura Biotechnology |
Long Yuan and Maccura Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Long Yuan and Maccura Biotechnology
The main advantage of trading using opposite Long Yuan and Maccura Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Long Yuan 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.| Long Yuan vs. China Life Insurance | Long Yuan vs. Cinda Securities Co | Long Yuan vs. Piotech Inc A | Long Yuan vs. Dongxing Sec Co |
| Maccura Biotechnology vs. Shandong Longquan Pipeline | Maccura Biotechnology vs. Lutian Machinery Co | Maccura Biotechnology vs. Hangzhou Pinming Software | Maccura Biotechnology vs. Long Yuan Construction |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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