Correlation Between Lutian Machinery and Maccura Biotechnology
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By analyzing existing cross correlation between Lutian Machinery Co and Maccura Biotechnology Co, you can compare the effects of market volatilities on Lutian Machinery 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 Lutian Machinery with a short position of Maccura Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lutian Machinery and Maccura Biotechnology.
Diversification Opportunities for Lutian Machinery and Maccura Biotechnology
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lutian and Maccura is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Lutian Machinery 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 Lutian Machinery 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 Lutian Machinery 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 Lutian Machinery i.e., Lutian Machinery and Maccura Biotechnology go up and down completely randomly.
Pair Corralation between Lutian Machinery and Maccura Biotechnology
Assuming the 90 days trading horizon Lutian Machinery Co is expected to generate 0.97 times more return on investment than Maccura Biotechnology. However, Lutian Machinery Co is 1.03 times less risky than Maccura Biotechnology. It trades about 0.02 of its potential returns per unit of risk. Maccura Biotechnology Co is currently generating about -0.08 per unit of risk. If you would invest 1,561 in Lutian Machinery Co on September 12, 2024 and sell it today you would earn a total of 8.00 from holding Lutian Machinery Co or generate 0.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lutian Machinery Co vs. Maccura Biotechnology Co
Performance |
| Timeline |
| Lutian Machinery |
| Maccura Biotechnology |
Lutian Machinery and Maccura Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lutian Machinery and Maccura Biotechnology
The main advantage of trading using opposite Lutian Machinery and Maccura Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lutian Machinery 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.| Lutian Machinery vs. Agricultural Bank of | Lutian Machinery vs. Industrial and Commercial | Lutian Machinery vs. Bank of China | Lutian Machinery vs. PetroChina Co Ltd |
| Maccura Biotechnology vs. Cultural Investment Holdings | Maccura Biotechnology vs. Gome Telecom Equipment | Maccura Biotechnology vs. Holitech Technology Co | Maccura Biotechnology vs. Zotye Automobile 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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