Correlation Between Shanghai OPM and Maccura Biotechnology
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By analyzing existing cross correlation between Shanghai OPM Biosciences and Maccura Biotechnology Co, you can compare the effects of market volatilities on Shanghai OPM 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 Shanghai OPM with a short position of Maccura Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai OPM and Maccura Biotechnology.
Diversification Opportunities for Shanghai OPM and Maccura Biotechnology
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Maccura is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai OPM Biosciences and Maccura Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maccura Biotechnology and Shanghai OPM 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 Shanghai OPM Biosciences 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 Shanghai OPM i.e., Shanghai OPM and Maccura Biotechnology go up and down completely randomly.
Pair Corralation between Shanghai OPM and Maccura Biotechnology
Assuming the 90 days trading horizon Shanghai OPM Biosciences is expected to generate 1.91 times more return on investment than Maccura Biotechnology. However, Shanghai OPM is 1.91 times more volatile than Maccura Biotechnology Co. It trades about 0.21 of its potential returns per unit of risk. Maccura Biotechnology Co is currently generating about 0.03 per unit of risk. If you would invest 3,954 in Shanghai OPM Biosciences on September 3, 2024 and sell it today you would earn a total of 662.00 from holding Shanghai OPM Biosciences or generate 16.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai OPM Biosciences vs. Maccura Biotechnology Co
Performance |
| Timeline |
| Shanghai OPM Biosciences |
| Maccura Biotechnology |
Shanghai OPM and Maccura Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai OPM and Maccura Biotechnology
The main advantage of trading using opposite Shanghai OPM and Maccura Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai OPM 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.| Shanghai OPM vs. Westone Information Industry | Shanghai OPM vs. Dawning Information Industry | Shanghai OPM vs. Guangzhou Ruoyuchen Information | Shanghai OPM vs. Duzhe Publishing Media |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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