Correlation Between Dongguan Chitwing and Maxvision Technology
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By analyzing existing cross correlation between Dongguan Chitwing Technology and Maxvision Technology Corp, you can compare the effects of market volatilities on Dongguan Chitwing 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 Dongguan Chitwing with a short position of Maxvision Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongguan Chitwing and Maxvision Technology.
Diversification Opportunities for Dongguan Chitwing and Maxvision Technology
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dongguan and Maxvision is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Dongguan Chitwing Technology 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 Dongguan Chitwing 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 Dongguan Chitwing Technology 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 Dongguan Chitwing i.e., Dongguan Chitwing and Maxvision Technology go up and down completely randomly.
Pair Corralation between Dongguan Chitwing and Maxvision Technology
Assuming the 90 days trading horizon Dongguan Chitwing Technology is expected to under-perform the Maxvision Technology. In addition to that, Dongguan Chitwing is 1.8 times more volatile than Maxvision Technology Corp. It trades about -0.05 of its total potential returns per unit of risk. Maxvision Technology Corp is currently generating about 0.14 per unit of volatility. If you would invest 2,239 in Maxvision Technology Corp on September 1, 2024 and sell it today you would earn a total of 174.00 from holding Maxvision Technology Corp or generate 7.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongguan Chitwing Technology vs. Maxvision Technology Corp
Performance |
| Timeline |
| Dongguan Chitwing |
| Maxvision Technology Corp |
Dongguan Chitwing and Maxvision Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongguan Chitwing and Maxvision Technology
The main advantage of trading using opposite Dongguan Chitwing and Maxvision Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongguan Chitwing 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.| Dongguan Chitwing vs. China Petroleum Chemical | Dongguan Chitwing vs. PetroChina Co Ltd | Dongguan Chitwing vs. China State Construction | Dongguan Chitwing vs. China Railway Group |
| Maxvision Technology vs. Lingyuan Iron Steel | Maxvision Technology vs. Sino Medical Sciences | Maxvision Technology vs. Nanjing Vishee Medical | Maxvision Technology vs. Kontour Medical Technology |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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