Correlation Between Guangdong Jingyi and Maxvision Technology
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Maxvision Technology Corp, you can compare the effects of market volatilities on Guangdong Jingyi 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 Guangdong Jingyi with a short position of Maxvision Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Maxvision Technology.
Diversification Opportunities for Guangdong Jingyi and Maxvision Technology
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Maxvision is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal 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 Guangdong Jingyi 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 Guangdong Jingyi Metal 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 Guangdong Jingyi i.e., Guangdong Jingyi and Maxvision Technology go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Maxvision Technology
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 1.09 times more return on investment than Maxvision Technology. However, Guangdong Jingyi is 1.09 times more volatile than Maxvision Technology Corp. It trades about 0.08 of its potential returns per unit of risk. Maxvision Technology Corp is currently generating about 0.04 per unit of risk. If you would invest 449.00 in Guangdong Jingyi Metal on November 4, 2024 and sell it today you would earn a total of 280.00 from holding Guangdong Jingyi Metal or generate 62.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Maxvision Technology Corp
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Maxvision Technology Corp |
Guangdong Jingyi and Maxvision Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Maxvision Technology
The main advantage of trading using opposite Guangdong Jingyi and Maxvision Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi 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.| Guangdong Jingyi vs. Allmed Medical Products | Guangdong Jingyi vs. Hengkang Medical Group | Guangdong Jingyi vs. Touchstone International Medical | Guangdong Jingyi vs. Chengtun Mining Group |
| Maxvision Technology vs. Agricultural Bank of | Maxvision Technology vs. Industrial and Commercial | Maxvision Technology vs. Bank of China | Maxvision Technology vs. China Construction Bank |
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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