Correlation Between Maxvision Technology and Shenzhen Noposion
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By analyzing existing cross correlation between Maxvision Technology Corp and Shenzhen Noposion Agrochemicals, you can compare the effects of market volatilities on Maxvision Technology and Shenzhen Noposion 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 Shenzhen Noposion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxvision Technology and Shenzhen Noposion.
Diversification Opportunities for Maxvision Technology and Shenzhen Noposion
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Maxvision and Shenzhen is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Maxvision Technology Corp and Shenzhen Noposion Agrochemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Noposion 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 Shenzhen Noposion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Noposion has no effect on the direction of Maxvision Technology i.e., Maxvision Technology and Shenzhen Noposion go up and down completely randomly.
Pair Corralation between Maxvision Technology and Shenzhen Noposion
Assuming the 90 days trading horizon Maxvision Technology Corp is expected to generate 0.73 times more return on investment than Shenzhen Noposion. However, Maxvision Technology Corp is 1.38 times less risky than Shenzhen Noposion. It trades about 0.4 of its potential returns per unit of risk. Shenzhen Noposion Agrochemicals is currently generating about -0.05 per unit of risk. If you would invest 2,119 in Maxvision Technology Corp on November 7, 2024 and sell it today you would earn a total of 327.00 from holding Maxvision Technology Corp or generate 15.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maxvision Technology Corp vs. Shenzhen Noposion Agrochemical
Performance |
| Timeline |
| Maxvision Technology Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Shenzhen Noposion |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Maxvision Technology and Shenzhen Noposion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maxvision Technology and Shenzhen Noposion
The main advantage of trading using opposite Maxvision Technology and Shenzhen Noposion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maxvision Technology position performs unexpectedly, Shenzhen Noposion 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 Shenzhen Noposion will offset losses from the drop in Shenzhen Noposion's long position.The idea behind Maxvision Technology Corp and Shenzhen Noposion Agrochemicals pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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