Correlation Between Chongqing Sulian and Maccura Biotechnology
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By analyzing existing cross correlation between Chongqing Sulian Plastic and Maccura Biotechnology Co, you can compare the effects of market volatilities on Chongqing Sulian 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 Chongqing Sulian with a short position of Maccura Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Sulian and Maccura Biotechnology.
Diversification Opportunities for Chongqing Sulian and Maccura Biotechnology
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chongqing and Maccura is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Sulian Plastic and Maccura Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maccura Biotechnology and Chongqing Sulian 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 Chongqing Sulian Plastic 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 Chongqing Sulian i.e., Chongqing Sulian and Maccura Biotechnology go up and down completely randomly.
Pair Corralation between Chongqing Sulian and Maccura Biotechnology
Assuming the 90 days trading horizon Chongqing Sulian Plastic is expected to generate 2.08 times more return on investment than Maccura Biotechnology. However, Chongqing Sulian is 2.08 times more volatile than Maccura Biotechnology Co. It trades about -0.05 of its potential returns per unit of risk. Maccura Biotechnology Co is currently generating about -0.12 per unit of risk. If you would invest 2,764 in Chongqing Sulian Plastic on September 25, 2024 and sell it today you would lose (95.00) from holding Chongqing Sulian Plastic or give up 3.44% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Chongqing Sulian Plastic vs. Maccura Biotechnology Co
Performance |
Timeline |
Chongqing Sulian Plastic |
Maccura Biotechnology |
Chongqing Sulian and Maccura Biotechnology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chongqing Sulian and Maccura Biotechnology
The main advantage of trading using opposite Chongqing Sulian and Maccura Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Sulian 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.Chongqing Sulian vs. China Life Insurance | Chongqing Sulian vs. Cinda Securities Co | Chongqing Sulian vs. Piotech Inc A | Chongqing Sulian vs. Dongxing Sec Co |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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