Correlation Between MayAir Technology and Sinosteel Engineering
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By analyzing existing cross correlation between MayAir Technology Co and Sinosteel Engineering and, you can compare the effects of market volatilities on MayAir Technology and Sinosteel Engineering 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 MayAir Technology with a short position of Sinosteel Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of MayAir Technology and Sinosteel Engineering.
Diversification Opportunities for MayAir Technology and Sinosteel Engineering
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MayAir and Sinosteel is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding MayAir Technology Co and Sinosteel Engineering and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinosteel Engineering and and MayAir Technology 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 MayAir Technology Co are associated (or correlated) with Sinosteel Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinosteel Engineering and has no effect on the direction of MayAir Technology i.e., MayAir Technology and Sinosteel Engineering go up and down completely randomly.
Pair Corralation between MayAir Technology and Sinosteel Engineering
Assuming the 90 days trading horizon MayAir Technology Co is expected to under-perform the Sinosteel Engineering. In addition to that, MayAir Technology is 1.33 times more volatile than Sinosteel Engineering and. It trades about -0.13 of its total potential returns per unit of risk. Sinosteel Engineering and is currently generating about -0.17 per unit of volatility. If you would invest 714.00 in Sinosteel Engineering and on November 1, 2024 and sell it today you would lose (70.00) from holding Sinosteel Engineering and or give up 9.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MayAir Technology Co vs. Sinosteel Engineering and
Performance |
| Timeline |
| MayAir Technology |
| Sinosteel Engineering and |
MayAir Technology and Sinosteel Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MayAir Technology and Sinosteel Engineering
The main advantage of trading using opposite MayAir Technology and Sinosteel Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MayAir Technology position performs unexpectedly, Sinosteel Engineering 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 Sinosteel Engineering will offset losses from the drop in Sinosteel Engineering's long position.| MayAir Technology vs. Jiangsu Phoenix Publishing | MayAir Technology vs. Southern PublishingMedia Co | MayAir Technology vs. Xiwang Foodstuffs Co | MayAir Technology vs. Offcn Education Technology |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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