Correlation Between Penyao Environmental and MayAir Technology
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By analyzing existing cross correlation between Penyao Environmental Protection and MayAir Technology Co, you can compare the effects of market volatilities on Penyao Environmental and MayAir 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 Penyao Environmental with a short position of MayAir Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penyao Environmental and MayAir Technology.
Diversification Opportunities for Penyao Environmental and MayAir Technology
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Penyao and MayAir is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Penyao Environmental Protectio and MayAir Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MayAir Technology and Penyao Environmental 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 Penyao Environmental Protection are associated (or correlated) with MayAir Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MayAir Technology has no effect on the direction of Penyao Environmental i.e., Penyao Environmental and MayAir Technology go up and down completely randomly.
Pair Corralation between Penyao Environmental and MayAir Technology
Assuming the 90 days trading horizon Penyao Environmental Protection is expected to under-perform the MayAir Technology. In addition to that, Penyao Environmental is 1.65 times more volatile than MayAir Technology Co. It trades about -0.2 of its total potential returns per unit of risk. MayAir Technology Co is currently generating about -0.31 per unit of volatility. If you would invest 3,700 in MayAir Technology Co on October 12, 2024 and sell it today you would lose (451.00) from holding MayAir Technology Co or give up 12.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Penyao Environmental Protectio vs. MayAir Technology Co
Performance |
| Timeline |
| Penyao Environmental |
| MayAir Technology |
Penyao Environmental and MayAir Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penyao Environmental and MayAir Technology
The main advantage of trading using opposite Penyao Environmental and MayAir Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penyao Environmental position performs unexpectedly, MayAir 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 MayAir Technology will offset losses from the drop in MayAir Technology's long position.| Penyao Environmental vs. Zijin Mining Group | Penyao Environmental vs. Shenzhen Silver Basis | Penyao Environmental vs. AVIC Fund Management | Penyao Environmental vs. Innovative Medical Management |
| MayAir Technology vs. Sunwave Communications Co | MayAir Technology vs. Nantong Haixing Electronics | MayAir Technology vs. Techshine Electronics Co | MayAir Technology vs. Tongyu Communication |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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