Correlation Between Maxvision Technology and Hangzhou Minsheng
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By analyzing existing cross correlation between Maxvision Technology Corp and Hangzhou Minsheng Healthcare, you can compare the effects of market volatilities on Maxvision Technology and Hangzhou Minsheng 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 Hangzhou Minsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxvision Technology and Hangzhou Minsheng.
Diversification Opportunities for Maxvision Technology and Hangzhou Minsheng
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Maxvision and Hangzhou is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Maxvision Technology Corp and Hangzhou Minsheng Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Minsheng 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 Hangzhou Minsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Minsheng has no effect on the direction of Maxvision Technology i.e., Maxvision Technology and Hangzhou Minsheng go up and down completely randomly.
Pair Corralation between Maxvision Technology and Hangzhou Minsheng
Assuming the 90 days trading horizon Maxvision Technology Corp is expected to generate 1.62 times more return on investment than Hangzhou Minsheng. However, Maxvision Technology is 1.62 times more volatile than Hangzhou Minsheng Healthcare. It trades about 0.03 of its potential returns per unit of risk. Hangzhou Minsheng Healthcare is currently generating about -0.11 per unit of risk. If you would invest 2,317 in Maxvision Technology Corp on November 1, 2024 and sell it today you would earn a total of 26.00 from holding Maxvision Technology Corp or generate 1.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maxvision Technology Corp vs. Hangzhou Minsheng Healthcare
Performance |
| Timeline |
| Maxvision Technology Corp |
| Hangzhou Minsheng |
Maxvision Technology and Hangzhou Minsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maxvision Technology and Hangzhou Minsheng
The main advantage of trading using opposite Maxvision Technology and Hangzhou Minsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maxvision Technology position performs unexpectedly, Hangzhou Minsheng 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 Hangzhou Minsheng will offset losses from the drop in Hangzhou Minsheng's long position.The idea behind Maxvision Technology Corp and Hangzhou Minsheng Healthcare 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.
| Hangzhou Minsheng vs. Maxvision Technology Corp | Hangzhou Minsheng vs. Jiujiang Shanshui Technology | Hangzhou Minsheng vs. Inspur Software Co | Hangzhou Minsheng vs. Fujian Boss Software |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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