Correlation Between Guangdong Transtek and Maxvision Technology
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By analyzing existing cross correlation between Guangdong Transtek Medical and Maxvision Technology Corp, you can compare the effects of market volatilities on Guangdong Transtek and Maxvision 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 Guangdong Transtek with a short position of Maxvision Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Transtek and Maxvision Technology.
Diversification Opportunities for Guangdong Transtek and Maxvision Technology
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Maxvision is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Transtek Medical and Maxvision Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maxvision Technology Corp and Guangdong Transtek 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 Guangdong Transtek Medical are associated (or correlated) with Maxvision Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maxvision Technology Corp has no effect on the direction of Guangdong Transtek i.e., Guangdong Transtek and Maxvision Technology go up and down completely randomly.
Pair Corralation between Guangdong Transtek and Maxvision Technology
Assuming the 90 days trading horizon Guangdong Transtek Medical is expected to generate 2.11 times more return on investment than Maxvision Technology. However, Guangdong Transtek is 2.11 times more volatile than Maxvision Technology Corp. It trades about -0.13 of its potential returns per unit of risk. Maxvision Technology Corp is currently generating about -0.36 per unit of risk. If you would invest 1,505 in Guangdong Transtek Medical on October 13, 2024 and sell it today you would lose (289.00) from holding Guangdong Transtek Medical or give up 19.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Transtek Medical vs. Maxvision Technology Corp
Performance |
| Timeline |
| Guangdong Transtek |
| Maxvision Technology Corp |
Guangdong Transtek and Maxvision Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Transtek and Maxvision Technology
The main advantage of trading using opposite Guangdong Transtek and Maxvision Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Transtek position performs unexpectedly, Maxvision 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 Maxvision Technology will offset losses from the drop in Maxvision Technology's long position.| Guangdong Transtek vs. Maxvision Technology Corp | Guangdong Transtek vs. Fiberhome Telecommunication Technologies | Guangdong Transtek vs. DO Home Collection | Guangdong Transtek vs. Shanghai Shuixing Home |
| Maxvision Technology vs. Ningbo Tech Bank Co | Maxvision Technology vs. Postal Savings Bank | Maxvision Technology vs. Yindu Kitchen Equipment | Maxvision Technology vs. Jahen Household Products |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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