Correlation Between Dongxing Sec and Maccura Biotechnology
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By analyzing existing cross correlation between Dongxing Sec Co and Maccura Biotechnology Co, you can compare the effects of market volatilities on Dongxing Sec 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 Dongxing Sec with a short position of Maccura Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Maccura Biotechnology.
Diversification Opportunities for Dongxing Sec and Maccura Biotechnology
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dongxing and Maccura is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec 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 Dongxing Sec 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 Dongxing Sec 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 Dongxing Sec i.e., Dongxing Sec and Maccura Biotechnology go up and down completely randomly.
Pair Corralation between Dongxing Sec and Maccura Biotechnology
Assuming the 90 days trading horizon Dongxing Sec Co is expected to under-perform the Maccura Biotechnology. In addition to that, Dongxing Sec is 1.3 times more volatile than Maccura Biotechnology Co. It trades about -0.07 of its total potential returns per unit of risk. Maccura Biotechnology Co is currently generating about -0.03 per unit of volatility. If you would invest 1,444 in Maccura Biotechnology Co on September 15, 2024 and sell it today you would lose (23.00) from holding Maccura Biotechnology Co or give up 1.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongxing Sec Co vs. Maccura Biotechnology Co
Performance |
| Timeline |
| Dongxing Sec |
| Maccura Biotechnology |
Dongxing Sec and Maccura Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and Maccura Biotechnology
The main advantage of trading using opposite Dongxing Sec and Maccura Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec 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.| Dongxing Sec vs. Winner Medical Co | Dongxing Sec vs. Offshore Oil Engineering | Dongxing Sec vs. Maider Medical Industry | Dongxing Sec vs. Xian International Medical |
| Maccura Biotechnology vs. China Life Insurance | Maccura Biotechnology vs. Cinda Securities Co | Maccura Biotechnology vs. Piotech Inc A | Maccura Biotechnology vs. Dongxing Sec Co |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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