Correlation Between Maxvision Technology and Shengda Mining
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By analyzing existing cross correlation between Maxvision Technology Corp and Shengda Mining Co, you can compare the effects of market volatilities on Maxvision Technology and Shengda Mining 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 Maxvision Technology with a short position of Shengda Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxvision Technology and Shengda Mining.
Diversification Opportunities for Maxvision Technology and Shengda Mining
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Maxvision and Shengda is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Maxvision Technology Corp and Shengda Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengda Mining and Maxvision Technology 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 Maxvision Technology Corp are associated (or correlated) with Shengda Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengda Mining has no effect on the direction of Maxvision Technology i.e., Maxvision Technology and Shengda Mining go up and down completely randomly.
Pair Corralation between Maxvision Technology and Shengda Mining
Assuming the 90 days trading horizon Maxvision Technology is expected to generate 21.58 times less return on investment than Shengda Mining. But when comparing it to its historical volatility, Maxvision Technology Corp is 1.13 times less risky than Shengda Mining. It trades about 0.0 of its potential returns per unit of risk. Shengda Mining Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,350 in Shengda Mining Co on September 3, 2024 and sell it today you would lose (74.00) from holding Shengda Mining Co or give up 5.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Maxvision Technology Corp vs. Shengda Mining Co
Performance |
| Timeline |
| Maxvision Technology Corp |
| Shengda Mining |
Maxvision Technology and Shengda Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maxvision Technology and Shengda Mining
The main advantage of trading using opposite Maxvision Technology and Shengda Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maxvision Technology position performs unexpectedly, Shengda Mining 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 Shengda Mining will offset losses from the drop in Shengda Mining's long position.| Maxvision Technology vs. Agricultural Bank of | Maxvision Technology vs. China Construction Bank | Maxvision Technology vs. Postal Savings Bank | Maxvision Technology vs. Bank of Communications |
| Shengda Mining vs. Zijin Mining Group | Shengda Mining vs. Baoshan Iron Steel | Shengda Mining vs. Rongsheng Petrochemical Co | Shengda Mining vs. Hoshine Silicon Ind |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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