Correlation Between Changchun Faway and Maccura Biotechnology
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By analyzing existing cross correlation between Changchun Faway Automobile and Maccura Biotechnology Co, you can compare the effects of market volatilities on Changchun Faway 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 Changchun Faway with a short position of Maccura Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun Faway and Maccura Biotechnology.
Diversification Opportunities for Changchun Faway and Maccura Biotechnology
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Changchun and Maccura is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Changchun Faway 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 Changchun Faway 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 Changchun Faway 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 Changchun Faway i.e., Changchun Faway and Maccura Biotechnology go up and down completely randomly.
Pair Corralation between Changchun Faway and Maccura Biotechnology
Assuming the 90 days trading horizon Changchun Faway Automobile is expected to generate 0.98 times more return on investment than Maccura Biotechnology. However, Changchun Faway Automobile is 1.02 times less risky than Maccura Biotechnology. It trades about 0.03 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 803.00 in Changchun Faway Automobile on September 13, 2024 and sell it today you would earn a total of 159.00 from holding Changchun Faway Automobile or generate 19.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun Faway Automobile vs. Maccura Biotechnology Co
Performance |
| Timeline |
| Changchun Faway Auto |
| Maccura Biotechnology |
Changchun Faway and Maccura Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun Faway and Maccura Biotechnology
The main advantage of trading using opposite Changchun Faway and Maccura Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun Faway 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.| Changchun Faway vs. BeiGene | Changchun Faway vs. Kweichow Moutai Co | Changchun Faway vs. Beijing Roborock Technology | Changchun Faway vs. G bits Network Technology |
| 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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