Correlation Between Xilong Chemical and Maxvision Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xilong Chemical Co and Maxvision Technology Corp, you can compare the effects of market volatilities on Xilong 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 Xilong Chemical with a short position of Maxvision Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xilong Chemical and Maxvision Technology.
Diversification Opportunities for Xilong Chemical and Maxvision Technology
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xilong and Maxvision is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Xilong Chemical Co 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 Xilong 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 Xilong Chemical Co 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 Xilong Chemical i.e., Xilong Chemical and Maxvision Technology go up and down completely randomly.
Pair Corralation between Xilong Chemical and Maxvision Technology
Assuming the 90 days trading horizon Xilong Chemical Co is expected to generate 0.79 times more return on investment than Maxvision Technology. However, Xilong Chemical Co is 1.26 times less risky than Maxvision Technology. It trades about 0.23 of its potential returns per unit of risk. Maxvision Technology Corp is currently generating about 0.03 per unit of risk. If you would invest 719.00 in Xilong Chemical Co on November 1, 2024 and sell it today you would earn a total of 62.00 from holding Xilong Chemical Co or generate 8.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xilong Chemical Co vs. Maxvision Technology Corp
Performance |
| Timeline |
| Xilong Chemical |
| Maxvision Technology Corp |
Xilong Chemical and Maxvision Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xilong Chemical and Maxvision Technology
The main advantage of trading using opposite Xilong Chemical and Maxvision Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xilong 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.| Xilong Chemical vs. Beingmate Baby Child | Xilong Chemical vs. Jilin Jlu Communication | Xilong Chemical vs. Zhejiang Yinlun Machinery | Xilong Chemical vs. TianJin 712 Communication |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |