Correlation Between Maxvision Technology and IRay Technology
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By analyzing existing cross correlation between Maxvision Technology Corp and iRay Technology Co, you can compare the effects of market volatilities on Maxvision Technology and IRay 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 Maxvision Technology with a short position of IRay Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxvision Technology and IRay Technology.
Diversification Opportunities for Maxvision Technology and IRay Technology
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Maxvision and IRay is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Maxvision Technology Corp and iRay Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iRay Technology 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 IRay Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iRay Technology has no effect on the direction of Maxvision Technology i.e., Maxvision Technology and IRay Technology go up and down completely randomly.
Pair Corralation between Maxvision Technology and IRay Technology
Assuming the 90 days trading horizon Maxvision Technology Corp is expected to generate 0.83 times more return on investment than IRay Technology. However, Maxvision Technology Corp is 1.2 times less risky than IRay Technology. It trades about 0.14 of its potential returns per unit of risk. iRay Technology Co is currently generating about 0.0 per unit of risk. 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 | 95.65% |
| Values | Daily Returns |
Maxvision Technology Corp vs. iRay Technology Co
Performance |
| Timeline |
| Maxvision Technology Corp |
| iRay Technology |
Maxvision Technology and IRay Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maxvision Technology and IRay Technology
The main advantage of trading using opposite Maxvision Technology and IRay Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maxvision Technology position performs unexpectedly, IRay 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 IRay Technology will offset losses from the drop in IRay Technology's long position.| Maxvision Technology vs. Lingyuan Iron Steel | Maxvision Technology vs. Sino Medical Sciences | Maxvision Technology vs. Nanjing Vishee Medical | Maxvision Technology vs. Kontour Medical Technology |
| IRay Technology vs. Haima Automobile Group | IRay Technology vs. Keeson Technology Corp | IRay Technology vs. Zotye Automobile Co | IRay Technology vs. Guangzhou Automobile Group |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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