Correlation Between Shenzhen Transsion and MayAir Technology
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By analyzing existing cross correlation between Shenzhen Transsion Holdings and MayAir Technology Co, you can compare the effects of market volatilities on Shenzhen Transsion 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 Shenzhen Transsion with a short position of MayAir Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Transsion and MayAir Technology.
Diversification Opportunities for Shenzhen Transsion and MayAir Technology
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and MayAir is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Transsion Holdings and MayAir Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MayAir Technology and Shenzhen Transsion 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 Shenzhen Transsion Holdings 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 Shenzhen Transsion i.e., Shenzhen Transsion and MayAir Technology go up and down completely randomly.
Pair Corralation between Shenzhen Transsion and MayAir Technology
Assuming the 90 days trading horizon Shenzhen Transsion Holdings is expected to under-perform the MayAir Technology. In addition to that, Shenzhen Transsion is 1.12 times more volatile than MayAir Technology Co. It trades about -0.01 of its total potential returns per unit of risk. MayAir Technology Co is currently generating about 0.02 per unit of volatility. If you would invest 3,402 in MayAir Technology Co on August 29, 2024 and sell it today you would earn a total of 208.00 from holding MayAir Technology Co or generate 6.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Transsion Holdings vs. MayAir Technology Co
Performance |
| Timeline |
| Shenzhen Transsion |
| MayAir Technology |
Shenzhen Transsion and MayAir Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Transsion and MayAir Technology
The main advantage of trading using opposite Shenzhen Transsion and MayAir Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Transsion 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.| Shenzhen Transsion vs. Western Metal Materials | Shenzhen Transsion vs. Easyhome New Retail | Shenzhen Transsion vs. Shandong Hongchuang Aluminum | Shenzhen Transsion vs. Gansu Huangtai Wine marketing |
| MayAir Technology vs. Kweichow Moutai Co | MayAir Technology vs. Shenzhen Mindray Bio Medical | MayAir Technology vs. G bits Network Technology | MayAir Technology vs. Shenzhen Transsion Holdings |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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