Correlation Between Maoming Petro and Maxvision Technology
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By analyzing existing cross correlation between Maoming Petro Chemical Shihua and Maxvision Technology Corp, you can compare the effects of market volatilities on Maoming Petro and Maxvision 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 Maoming Petro with a short position of Maxvision Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maoming Petro and Maxvision Technology.
Diversification Opportunities for Maoming Petro and Maxvision Technology
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Maoming and Maxvision is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Maoming Petro Chemical Shihua and Maxvision Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maxvision Technology Corp and Maoming Petro 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 Maoming Petro Chemical Shihua are associated (or correlated) with Maxvision Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maxvision Technology Corp has no effect on the direction of Maoming Petro i.e., Maoming Petro and Maxvision Technology go up and down completely randomly.
Pair Corralation between Maoming Petro and Maxvision Technology
Assuming the 90 days trading horizon Maoming Petro Chemical Shihua is expected to under-perform the Maxvision Technology. But the stock apears to be less risky and, when comparing its historical volatility, Maoming Petro Chemical Shihua is 1.47 times less risky than Maxvision Technology. The stock trades about -0.07 of its potential returns per unit of risk. The Maxvision Technology Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,317 in Maxvision Technology Corp on November 1, 2024 and sell it today you would earn a total of 26.00 from holding Maxvision Technology Corp or generate 1.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maoming Petro Chemical Shihua vs. Maxvision Technology Corp
Performance |
| Timeline |
| Maoming Petro Chemical |
| Maxvision Technology Corp |
Maoming Petro and Maxvision Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maoming Petro and Maxvision Technology
The main advantage of trading using opposite Maoming Petro and Maxvision Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maoming Petro position performs unexpectedly, Maxvision 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 Maxvision Technology will offset losses from the drop in Maxvision Technology's long position.| Maoming Petro vs. Suzhou Weizhixiang Food | Maoming Petro vs. Namchow Food Group | Maoming Petro vs. China Asset Management | Maoming Petro vs. Nanning Chemical Industry |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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