Correlation Between Chengdu Xinzhu and MayAir Technology
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By analyzing existing cross correlation between Chengdu Xinzhu RoadBridge and MayAir Technology Co, you can compare the effects of market volatilities on Chengdu Xinzhu 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 Chengdu Xinzhu with a short position of MayAir Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xinzhu and MayAir Technology.
Diversification Opportunities for Chengdu Xinzhu and MayAir Technology
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chengdu and MayAir is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xinzhu RoadBridge and MayAir Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MayAir Technology and Chengdu Xinzhu 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 Chengdu Xinzhu RoadBridge 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 Chengdu Xinzhu i.e., Chengdu Xinzhu and MayAir Technology go up and down completely randomly.
Pair Corralation between Chengdu Xinzhu and MayAir Technology
Assuming the 90 days trading horizon Chengdu Xinzhu RoadBridge is expected to generate 0.94 times more return on investment than MayAir Technology. However, Chengdu Xinzhu RoadBridge is 1.07 times less risky than MayAir Technology. It trades about 0.05 of its potential returns per unit of risk. MayAir Technology Co is currently generating about -0.07 per unit of risk. If you would invest 515.00 in Chengdu Xinzhu RoadBridge on September 1, 2024 and sell it today you would earn a total of 12.00 from holding Chengdu Xinzhu RoadBridge or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xinzhu RoadBridge vs. MayAir Technology Co
Performance |
| Timeline |
| Chengdu Xinzhu RoadBridge |
| MayAir Technology |
Chengdu Xinzhu and MayAir Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xinzhu and MayAir Technology
The main advantage of trading using opposite Chengdu Xinzhu and MayAir Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xinzhu 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.| Chengdu Xinzhu vs. Kweichow Moutai Co | Chengdu Xinzhu vs. NAURA Technology Group | Chengdu Xinzhu vs. Zhejiang Orient Gene | Chengdu Xinzhu vs. APT Medical |
| MayAir Technology vs. Cultural Investment Holdings | MayAir Technology vs. Gome Telecom Equipment | MayAir Technology vs. Bus Online Co | MayAir Technology vs. Holitech Technology Co |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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