Correlation Between China Railway and MayAir Technology
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By analyzing existing cross correlation between China Railway Group and MayAir Technology Co, you can compare the effects of market volatilities on China Railway 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 China Railway with a short position of MayAir Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and MayAir Technology.
Diversification Opportunities for China Railway and MayAir Technology
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and MayAir is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Group and MayAir Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MayAir Technology and China Railway 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 China Railway Group 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 China Railway i.e., China Railway and MayAir Technology go up and down completely randomly.
Pair Corralation between China Railway and MayAir Technology
Assuming the 90 days trading horizon China Railway Group is expected to generate 0.64 times more return on investment than MayAir Technology. However, China Railway Group is 1.57 times less risky than MayAir Technology. It trades about -0.13 of its potential returns per unit of risk. MayAir Technology Co is currently generating about -0.11 per unit of risk. If you would invest 673.00 in China Railway Group on November 6, 2024 and sell it today you would lose (81.00) from holding China Railway Group or give up 12.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Railway Group vs. MayAir Technology Co
Performance |
| Timeline |
| China Railway Group |
| MayAir Technology |
China Railway and MayAir Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and MayAir Technology
The main advantage of trading using opposite China Railway and MayAir Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway 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.| China Railway vs. Jiangsu Jinling Sports | China Railway vs. Beijing Kaiwen Education | China Railway vs. Caihong Display Devices | China Railway vs. Jiangsu Phoenix Publishing |
| MayAir Technology vs. Agricultural Bank of | MayAir Technology vs. Unisplendour Corp | MayAir Technology vs. Industrial Bank Co | MayAir Technology vs. China Everbright Bank |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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