Correlation Between Ma Kuang and Energenesis Biomedical

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Can any of the company-specific risk be diversified away by investing in both Ma Kuang and Energenesis Biomedical 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 Ma Kuang and Energenesis Biomedical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ma Kuang Healthcare and Energenesis Biomedical Co, you can compare the effects of market volatilities on Ma Kuang and Energenesis Biomedical 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 Ma Kuang with a short position of Energenesis Biomedical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ma Kuang and Energenesis Biomedical.

Diversification Opportunities for Ma Kuang and Energenesis Biomedical

4139EnergenesisDiversified Away4139EnergenesisDiversified Away100%
0.05
  Correlation Coefficient

Significant diversification

The 3 months correlation between 4139 and Energenesis is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Ma Kuang Healthcare and Energenesis Biomedical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energenesis Biomedical and Ma Kuang 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 Ma Kuang Healthcare are associated (or correlated) with Energenesis Biomedical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energenesis Biomedical has no effect on the direction of Ma Kuang i.e., Ma Kuang and Energenesis Biomedical go up and down completely randomly.

Pair Corralation between Ma Kuang and Energenesis Biomedical

Assuming the 90 days trading horizon Ma Kuang Healthcare is expected to under-perform the Energenesis Biomedical. In addition to that, Ma Kuang is 1.41 times more volatile than Energenesis Biomedical Co. It trades about -0.01 of its total potential returns per unit of risk. Energenesis Biomedical Co is currently generating about 0.03 per unit of volatility. If you would invest  5,080  in Energenesis Biomedical Co on September 14, 2024 and sell it today you would earn a total of  130.00  from holding Energenesis Biomedical Co or generate 2.56% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Ma Kuang Healthcare  vs.  Energenesis Biomedical Co

 Performance 
JavaScript chart by amCharts 3.21.15OctNov 05101520
JavaScript chart by amCharts 3.21.154139 6657
       Timeline  
Ma Kuang Healthcare 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Ma Kuang Healthcare has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Ma Kuang is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec303132333435
Energenesis Biomedical 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Energenesis Biomedical Co are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Energenesis Biomedical is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec505254565860

Ma Kuang and Energenesis Biomedical Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-7.78-5.82-3.87-1.920.021.93.865.827.789.74 0.020.040.060.080.100.120.14
JavaScript chart by amCharts 3.21.154139 6657
       Returns  

Pair Trading with Ma Kuang and Energenesis Biomedical

The main advantage of trading using opposite Ma Kuang and Energenesis Biomedical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ma Kuang position performs unexpectedly, Energenesis Biomedical 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 Energenesis Biomedical will offset losses from the drop in Energenesis Biomedical's long position.
The idea behind Ma Kuang Healthcare and Energenesis Biomedical 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

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