Correlation Between Industrial Bank and Maccura Biotechnology
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By analyzing existing cross correlation between Industrial Bank Co and Maccura Biotechnology Co, you can compare the effects of market volatilities on Industrial Bank 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 Industrial Bank with a short position of Maccura Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and Maccura Biotechnology.
Diversification Opportunities for Industrial Bank and Maccura Biotechnology
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Industrial and Maccura is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank 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 Industrial Bank 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 Industrial Bank 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 Industrial Bank i.e., Industrial Bank and Maccura Biotechnology go up and down completely randomly.
Pair Corralation between Industrial Bank and Maccura Biotechnology
Assuming the 90 days trading horizon Industrial Bank Co is expected to under-perform the Maccura Biotechnology. But the stock apears to be less risky and, when comparing its historical volatility, Industrial Bank Co is 1.68 times less risky than Maccura Biotechnology. The stock trades about -0.24 of its potential returns per unit of risk. The Maccura Biotechnology Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,396 in Maccura Biotechnology Co on August 25, 2024 and sell it today you would lose (12.00) from holding Maccura Biotechnology Co or give up 0.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial Bank Co vs. Maccura Biotechnology Co
Performance |
| Timeline |
| Industrial Bank |
| Maccura Biotechnology |
Industrial Bank and Maccura Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and Maccura Biotechnology
The main advantage of trading using opposite Industrial Bank and Maccura Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank 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.| Industrial Bank vs. Gan Yuan Foods | Industrial Bank vs. Jiangnan Mould Plastic | Industrial Bank vs. Malion New Materials | Industrial Bank vs. Fuda Alloy Materials |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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