Correlation Between Maccura Biotechnology and Suzhou Dongshan

Can any of the company-specific risk be diversified away by investing in both Maccura Biotechnology and Suzhou Dongshan 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 Maccura Biotechnology and Suzhou Dongshan into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Maccura Biotechnology Co and Suzhou Dongshan Precision, you can compare the effects of market volatilities on Maccura Biotechnology and Suzhou Dongshan 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 Maccura Biotechnology with a short position of Suzhou Dongshan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maccura Biotechnology and Suzhou Dongshan.

Diversification Opportunities for Maccura Biotechnology and Suzhou Dongshan

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Correlation Coefficient

Maccura Biotechnology  Suzhou Dongshan

Pay attention - limited upside

The 3 months correlation between Maccura and Suzhou is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Maccura Biotechnology Co and Suzhou Dongshan Precision in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Dongshan Precision and Maccura Biotechnology 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 Maccura Biotechnology Co are associated (or correlated) with Suzhou Dongshan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Dongshan Precision has no effect on the direction of Maccura Biotechnology i.e., Maccura Biotechnology and Suzhou Dongshan go up and down completely randomly.

Pair Corralation between Maccura Biotechnology and Suzhou Dongshan

If you would invest (100.00) in Suzhou Dongshan Precision on October 10, 2024 and sell it today you would earn a total of  100.00  from holding Suzhou Dongshan Precision or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Maccura Biotechnology Co  vs.  Suzhou Dongshan Precision

Maccura Biotechnology

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Maccura Biotechnology Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Suzhou Dongshan Precision

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Suzhou Dongshan Precision has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Suzhou Dongshan is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Maccura Biotechnology and Suzhou Dongshan

The main advantage of trading using opposite Maccura Biotechnology and Suzhou Dongshan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maccura Biotechnology position performs unexpectedly, Suzhou Dongshan 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 Suzhou Dongshan will offset losses from the drop in Suzhou Dongshan's long position.

The idea behind Maccura Biotechnology Co and Suzhou Dongshan Precision pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.