Correlation Between Nantong Haixing and MayAir Technology
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By analyzing existing cross correlation between Nantong Haixing Electronics and MayAir Technology Co, you can compare the effects of market volatilities on Nantong Haixing 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 Nantong Haixing with a short position of MayAir Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nantong Haixing and MayAir Technology.
Diversification Opportunities for Nantong Haixing and MayAir Technology
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nantong and MayAir is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Nantong Haixing Electronics and MayAir Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MayAir Technology and Nantong Haixing 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 Nantong Haixing Electronics 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 Nantong Haixing i.e., Nantong Haixing and MayAir Technology go up and down completely randomly.
Pair Corralation between Nantong Haixing and MayAir Technology
Assuming the 90 days trading horizon Nantong Haixing Electronics is expected to generate 0.95 times more return on investment than MayAir Technology. However, Nantong Haixing Electronics is 1.06 times less risky than MayAir Technology. It trades about -0.23 of its potential returns per unit of risk. MayAir Technology Co is currently generating about -0.31 per unit of risk. If you would invest 1,395 in Nantong Haixing Electronics on October 12, 2024 and sell it today you would lose (123.00) from holding Nantong Haixing Electronics or give up 8.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nantong Haixing Electronics vs. MayAir Technology Co
Performance |
| Timeline |
| Nantong Haixing Elec |
| MayAir Technology |
Nantong Haixing and MayAir Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nantong Haixing and MayAir Technology
The main advantage of trading using opposite Nantong Haixing and MayAir Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nantong Haixing 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.| Nantong Haixing vs. Tianjin Hi Tech Development | Nantong Haixing vs. Allwin Telecommunication Co | Nantong Haixing vs. Sichuan Teway Food | Nantong Haixing vs. Jiangxi Hengda Hi Tech |
| 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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