Correlation Between Guangzhou Dongfang and MayAir Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Dongfang Hotel and MayAir Technology Co, you can compare the effects of market volatilities on Guangzhou Dongfang 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 Guangzhou Dongfang with a short position of MayAir Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Dongfang and MayAir Technology.
Diversification Opportunities for Guangzhou Dongfang and MayAir Technology
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and MayAir is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Dongfang Hotel and MayAir Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MayAir Technology and Guangzhou Dongfang 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 Guangzhou Dongfang Hotel 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 Guangzhou Dongfang i.e., Guangzhou Dongfang and MayAir Technology go up and down completely randomly.
Pair Corralation between Guangzhou Dongfang and MayAir Technology
Assuming the 90 days trading horizon Guangzhou Dongfang is expected to generate 4.4 times less return on investment than MayAir Technology. But when comparing it to its historical volatility, Guangzhou Dongfang Hotel is 2.34 times less risky than MayAir Technology. It trades about 0.1 of its potential returns per unit of risk. MayAir Technology Co is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 3,438 in MayAir Technology Co on December 10, 2024 and sell it today you would earn a total of 446.00 from holding MayAir Technology Co or generate 12.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Dongfang Hotel vs. MayAir Technology Co
Performance |
| Timeline |
| Guangzhou Dongfang Hotel |
| MayAir Technology |
Guangzhou Dongfang and MayAir Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Dongfang and MayAir Technology
The main advantage of trading using opposite Guangzhou Dongfang and MayAir Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Dongfang 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.| Guangzhou Dongfang vs. Shandong Longquan Pipeline | ||
| Guangzhou Dongfang vs. Ningbo Kangqiang Electronics | ||
| Guangzhou Dongfang vs. XinJiang GuoTong Pipeline | ||
| Guangzhou Dongfang vs. HeNan Splendor Science |
| MayAir Technology vs. Hainan Haiqi Transportation | ||
| MayAir Technology vs. Qingdao Choho Industrial | ||
| MayAir Technology vs. Guangdong Jingyi Metal | ||
| MayAir Technology vs. Yoantion Industrial IncLtd |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |