Correlation Between Maxigen Biotech and Dimension Computer
Can any of the company-specific risk be diversified away by investing in both Maxigen Biotech and Dimension Computer 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 Maxigen Biotech and Dimension Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maxigen Biotech and Dimension Computer Technology, you can compare the effects of market volatilities on Maxigen Biotech and Dimension Computer 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 Maxigen Biotech with a short position of Dimension Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxigen Biotech and Dimension Computer.
Diversification Opportunities for Maxigen Biotech and Dimension Computer
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Maxigen and Dimension is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Maxigen Biotech and Dimension Computer Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dimension Computer and Maxigen Biotech 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 Maxigen Biotech are associated (or correlated) with Dimension Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dimension Computer has no effect on the direction of Maxigen Biotech i.e., Maxigen Biotech and Dimension Computer go up and down completely randomly.
Pair Corralation between Maxigen Biotech and Dimension Computer
Assuming the 90 days trading horizon Maxigen Biotech is expected to generate 1.34 times less return on investment than Dimension Computer. But when comparing it to its historical volatility, Maxigen Biotech is 2.57 times less risky than Dimension Computer. It trades about 0.39 of its potential returns per unit of risk. Dimension Computer Technology is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,175 in Dimension Computer Technology on September 19, 2024 and sell it today you would earn a total of 355.00 from holding Dimension Computer Technology or generate 16.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Maxigen Biotech vs. Dimension Computer Technology
Performance |
Timeline |
Maxigen Biotech |
Dimension Computer |
Maxigen Biotech and Dimension Computer Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Maxigen Biotech and Dimension Computer
The main advantage of trading using opposite Maxigen Biotech and Dimension Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maxigen Biotech position performs unexpectedly, Dimension Computer 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 Dimension Computer will offset losses from the drop in Dimension Computer's long position.Maxigen Biotech vs. Phytohealth Corp | Maxigen Biotech vs. Yung Zip Chemical | Maxigen Biotech vs. Ruentex Development Co | Maxigen Biotech vs. Symtek Automation Asia |
Dimension Computer vs. Li Kang Biomedical | Dimension Computer vs. Maxigen Biotech | Dimension Computer vs. Microelectronics Technology | Dimension Computer vs. United Radiant Technology |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |