Correlation Between MaxCyte and China Mengniu
Can any of the company-specific risk be diversified away by investing in both MaxCyte and China Mengniu at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining MaxCyte and China Mengniu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MaxCyte and China Mengniu Dairy, you can compare the effects of market volatilities on MaxCyte and China Mengniu 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 MaxCyte with a short position of China Mengniu. Check out your portfolio center. Please also check ongoing floating volatility patterns of MaxCyte and China Mengniu.
Diversification Opportunities for MaxCyte and China Mengniu
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MaxCyte and China is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding MaxCyte and China Mengniu Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Mengniu Dairy and MaxCyte 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 MaxCyte are associated (or correlated) with China Mengniu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Mengniu Dairy has no effect on the direction of MaxCyte i.e., MaxCyte and China Mengniu go up and down completely randomly.
Pair Corralation between MaxCyte and China Mengniu
Given the investment horizon of 90 days MaxCyte is expected to generate 2.86 times less return on investment than China Mengniu. In addition to that, MaxCyte is 1.16 times more volatile than China Mengniu Dairy. It trades about 0.01 of its total potential returns per unit of risk. China Mengniu Dairy is currently generating about 0.04 per unit of volatility. If you would invest 2,164 in China Mengniu Dairy on August 31, 2024 and sell it today you would earn a total of 45.00 from holding China Mengniu Dairy or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MaxCyte vs. China Mengniu Dairy
Performance |
| Timeline |
| MaxCyte |
| China Mengniu Dairy |
MaxCyte and China Mengniu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MaxCyte and China Mengniu
The main advantage of trading using opposite MaxCyte and China Mengniu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MaxCyte position performs unexpectedly, China Mengniu 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 China Mengniu will offset losses from the drop in China Mengniu's long position.| MaxCyte vs. Sight Sciences | MaxCyte vs. CVRx Inc | MaxCyte vs. Neuropace | MaxCyte vs. Rapid Micro Biosystems |
| China Mengniu vs. The A2 Milk | China Mengniu vs. Altavoz Entertainment | China Mengniu vs. Artisan Consumer Goods | China Mengniu vs. General Mills |
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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