Correlation Between Shenyang Chemical and Maxvision Technology
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By analyzing existing cross correlation between Shenyang Chemical Industry and Maxvision Technology Corp, you can compare the effects of market volatilities on Shenyang Chemical 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 Shenyang Chemical with a short position of Maxvision Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Chemical and Maxvision Technology.
Diversification Opportunities for Shenyang Chemical and Maxvision Technology
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenyang and Maxvision is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Chemical Industry 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 Shenyang Chemical 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 Shenyang Chemical Industry 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 Shenyang Chemical i.e., Shenyang Chemical and Maxvision Technology go up and down completely randomly.
Pair Corralation between Shenyang Chemical and Maxvision Technology
Assuming the 90 days trading horizon Shenyang Chemical Industry is expected to under-perform the Maxvision Technology. But the stock apears to be less risky and, when comparing its historical volatility, Shenyang Chemical Industry is 1.06 times less risky than Maxvision Technology. The stock trades about -0.08 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Chemical Industry vs. Maxvision Technology Corp
Performance |
| Timeline |
| Shenyang Chemical |
| Maxvision Technology Corp |
Shenyang Chemical and Maxvision Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Chemical and Maxvision Technology
The main advantage of trading using opposite Shenyang Chemical and Maxvision Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Chemical 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.| Shenyang Chemical vs. Hua Xia Bank | Shenyang Chemical vs. Panda Financial Holding | Shenyang Chemical vs. Shenzhen Centralcon Investment | Shenyang Chemical vs. Lecron Energy Saving |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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