Correlation Between Guangdong Qunxing and MayAir Technology
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By analyzing existing cross correlation between Guangdong Qunxing Toys and MayAir Technology Co, you can compare the effects of market volatilities on Guangdong Qunxing 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 Guangdong Qunxing with a short position of MayAir Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Qunxing and MayAir Technology.
Diversification Opportunities for Guangdong Qunxing and MayAir Technology
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and MayAir is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Qunxing Toys and MayAir Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MayAir Technology and Guangdong Qunxing 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 Qunxing Toys 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 Guangdong Qunxing i.e., Guangdong Qunxing and MayAir Technology go up and down completely randomly.
Pair Corralation between Guangdong Qunxing and MayAir Technology
Assuming the 90 days trading horizon Guangdong Qunxing Toys is expected to generate 1.0 times more return on investment than MayAir Technology. However, Guangdong Qunxing Toys is 1.0 times less risky than MayAir Technology. It trades about 0.02 of its potential returns per unit of risk. MayAir Technology Co is currently generating about 0.02 per unit of risk. If you would invest 606.00 in Guangdong Qunxing Toys on September 3, 2024 and sell it today you would earn a total of 79.00 from holding Guangdong Qunxing Toys or generate 13.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Guangdong Qunxing Toys vs. MayAir Technology Co
Performance |
| Timeline |
| Guangdong Qunxing Toys |
| MayAir Technology |
Guangdong Qunxing and MayAir Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Qunxing and MayAir Technology
The main advantage of trading using opposite Guangdong Qunxing and MayAir Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Qunxing 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.| Guangdong Qunxing vs. PetroChina Co Ltd | Guangdong Qunxing vs. China Mobile Limited | Guangdong Qunxing vs. Industrial and Commercial | Guangdong Qunxing vs. China Life Insurance |
| MayAir Technology vs. Jiangsu Financial Leasing | MayAir Technology vs. Jiugui Liquor Co | MayAir Technology vs. Guangdong Qunxing Toys | MayAir Technology vs. Vontron 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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