Correlation Between Shenzhen SDG and MayAir Technology
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By analyzing existing cross correlation between Shenzhen SDG Information and MayAir Technology Co, you can compare the effects of market volatilities on Shenzhen SDG and MayAir Technology 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 Shenzhen SDG with a short position of MayAir Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and MayAir Technology.
Diversification Opportunities for Shenzhen SDG and MayAir Technology
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and MayAir is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Information and MayAir Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MayAir Technology and Shenzhen SDG 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 Shenzhen SDG Information are associated (or correlated) with MayAir Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MayAir Technology has no effect on the direction of Shenzhen SDG i.e., Shenzhen SDG and MayAir Technology go up and down completely randomly.
Pair Corralation between Shenzhen SDG and MayAir Technology
Assuming the 90 days trading horizon Shenzhen SDG Information is expected to generate 1.25 times more return on investment than MayAir Technology. However, Shenzhen SDG is 1.25 times more volatile than MayAir Technology Co. It trades about 0.2 of its potential returns per unit of risk. MayAir Technology Co is currently generating about 0.16 per unit of risk. If you would invest 522.00 in Shenzhen SDG Information on November 6, 2024 and sell it today you would earn a total of 40.00 from holding Shenzhen SDG Information or generate 7.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen SDG Information vs. MayAir Technology Co
Performance |
| Timeline |
| Shenzhen SDG Information |
| MayAir Technology |
Shenzhen SDG and MayAir Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen SDG and MayAir Technology
The main advantage of trading using opposite Shenzhen SDG and MayAir Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG position performs unexpectedly, MayAir Technology 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 MayAir Technology will offset losses from the drop in MayAir Technology's long position.| Shenzhen SDG vs. Hefei Metalforming Mach | Shenzhen SDG vs. Chongqing Shunbo Aluminum | Shenzhen SDG vs. Industrial Bank Co | Shenzhen SDG vs. Rising Nonferrous Metals |
| MayAir Technology vs. Servyou Software Group | MayAir Technology vs. Hubei Geoway Investment | MayAir Technology vs. Glodon Software Co | MayAir Technology vs. Henan Shuanghui Investment |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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