Correlation Between Xinjiang Communications and MayAir Technology
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By analyzing existing cross correlation between Xinjiang Communications Construction and MayAir Technology Co, you can compare the effects of market volatilities on Xinjiang Communications 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 Xinjiang Communications with a short position of MayAir Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and MayAir Technology.
Diversification Opportunities for Xinjiang Communications and MayAir Technology
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and MayAir is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr and MayAir Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MayAir Technology and Xinjiang Communications 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 Xinjiang Communications Construction 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 Xinjiang Communications i.e., Xinjiang Communications and MayAir Technology go up and down completely randomly.
Pair Corralation between Xinjiang Communications and MayAir Technology
Assuming the 90 days trading horizon Xinjiang Communications Construction is expected to generate 0.72 times more return on investment than MayAir Technology. However, Xinjiang Communications Construction is 1.38 times less risky than MayAir Technology. It trades about 0.2 of its potential returns per unit of risk. MayAir Technology Co is currently generating about -0.01 per unit of risk. If you would invest 1,129 in Xinjiang Communications Construction on August 31, 2024 and sell it today you would earn a total of 141.00 from holding Xinjiang Communications Construction or generate 12.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Communications Constr vs. MayAir Technology Co
Performance |
| Timeline |
| Xinjiang Communications |
| MayAir Technology |
Xinjiang Communications and MayAir Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Communications and MayAir Technology
The main advantage of trading using opposite Xinjiang Communications and MayAir Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications 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.| Xinjiang Communications vs. Cultural Investment Holdings | Xinjiang Communications vs. Gome Telecom Equipment | Xinjiang Communications vs. Bus Online Co | Xinjiang Communications vs. Holitech Technology Co |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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