Correlation Between Maccura Biotechnology and Tsinghuatongfang

Can any of the company-specific risk be diversified away by investing in both Maccura Biotechnology and Tsinghuatongfang 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 Tsinghuatongfang 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 Tsinghuatongfang Co, you can compare the effects of market volatilities on Maccura Biotechnology and Tsinghuatongfang 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 Tsinghuatongfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maccura Biotechnology and Tsinghuatongfang.

Diversification Opportunities for Maccura Biotechnology and Tsinghuatongfang

0.0

Correlation Coefficient

Maccura Biotechnology  Tsinghuatongfang

Pay attention - limited upside

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

Pair Corralation between Maccura Biotechnology and Tsinghuatongfang

If you would invest  1,355  in Maccura Biotechnology Co on December 29, 2024 and sell it today you would lose (16.00) from holding Maccura Biotechnology Co or give up 1.18% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.72%
Values	Daily Returns

Maccura Biotechnology Co  vs.  Tsinghuatongfang Co

Maccura Biotechnology

Risk-Adjusted Performance

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 somewhat strong basic indicators, Maccura Biotechnology is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Tsinghuatongfang

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tsinghuatongfang Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Tsinghuatongfang 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 Tsinghuatongfang

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

The idea behind Maccura Biotechnology Co and Tsinghuatongfang Co 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.