Correlation Between RoadMain T and MayAir Technology
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By analyzing existing cross correlation between RoadMain T Co and MayAir Technology Co, you can compare the effects of market volatilities on RoadMain T 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 RoadMain T with a short position of MayAir Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of RoadMain T and MayAir Technology.
Diversification Opportunities for RoadMain T and MayAir Technology
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between RoadMain and MayAir is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding RoadMain T Co and MayAir Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MayAir Technology and RoadMain T 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 RoadMain T Co 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 RoadMain T i.e., RoadMain T and MayAir Technology go up and down completely randomly.
Pair Corralation between RoadMain T and MayAir Technology
Assuming the 90 days trading horizon RoadMain T is expected to generate 1.8 times less return on investment than MayAir Technology. But when comparing it to its historical volatility, RoadMain T Co is 1.32 times less risky than MayAir Technology. It trades about 0.04 of its potential returns per unit of risk. MayAir Technology Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,387 in MayAir Technology Co on August 29, 2024 and sell it today you would earn a total of 223.00 from holding MayAir Technology Co or generate 6.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
RoadMain T Co vs. MayAir Technology Co
Performance |
| Timeline |
| RoadMain T |
| MayAir Technology |
RoadMain T and MayAir Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RoadMain T and MayAir Technology
The main advantage of trading using opposite RoadMain T and MayAir Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RoadMain T 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.| RoadMain T vs. Hainan Mining Co | RoadMain T vs. Tibet Huayu Mining | RoadMain T vs. Ye Chiu Metal | RoadMain T vs. Hefei Metalforming Mach |
| MayAir Technology vs. PetroChina Co Ltd | MayAir Technology vs. China State Construction | MayAir Technology vs. China Mobile Limited | MayAir Technology vs. Industrial and Commercial |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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