Correlation Between New China and MayAir Technology
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By analyzing existing cross correlation between New China Life and MayAir Technology Co, you can compare the effects of market volatilities on New China 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 New China with a short position of MayAir Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of New China and MayAir Technology.
Diversification Opportunities for New China and MayAir Technology
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between New and MayAir is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding New China Life and MayAir Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MayAir Technology and New China 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 New China Life 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 New China i.e., New China and MayAir Technology go up and down completely randomly.
Pair Corralation between New China and MayAir Technology
Assuming the 90 days trading horizon New China Life is expected to generate 1.08 times more return on investment than MayAir Technology. However, New China is 1.08 times more volatile than MayAir Technology Co. It trades about 0.01 of its potential returns per unit of risk. MayAir Technology Co is currently generating about -0.2 per unit of risk. If you would invest 5,243 in New China Life on September 14, 2024 and sell it today you would earn a total of 6.00 from holding New China Life or generate 0.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
New China Life vs. MayAir Technology Co
Performance |
| Timeline |
| New China Life |
| MayAir Technology |
New China and MayAir Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New China and MayAir Technology
The main advantage of trading using opposite New China and MayAir Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New China 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.| New China vs. Fujian Nanwang Environment | New China vs. Guangdong Silvere Sci | New China vs. Huaibei Mining Holdings | New China vs. Guocheng Mining Co |
| MayAir Technology vs. New China Life | MayAir Technology vs. Ming Yang Smart | MayAir Technology vs. 159681 | MayAir Technology vs. 159005 |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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