Correlation Between MayAir Technology and Chengdu Xinzhu
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By analyzing existing cross correlation between MayAir Technology Co and Chengdu Xinzhu RoadBridge, you can compare the effects of market volatilities on MayAir Technology and Chengdu Xinzhu 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 Chengdu Xinzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of MayAir Technology and Chengdu Xinzhu.
Diversification Opportunities for MayAir Technology and Chengdu Xinzhu
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MayAir and Chengdu is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding MayAir Technology Co and Chengdu Xinzhu RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xinzhu RoadBridge 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 Chengdu Xinzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xinzhu RoadBridge has no effect on the direction of MayAir Technology i.e., MayAir Technology and Chengdu Xinzhu go up and down completely randomly.
Pair Corralation between MayAir Technology and Chengdu Xinzhu
Assuming the 90 days trading horizon MayAir Technology Co is expected to under-perform the Chengdu Xinzhu. In addition to that, MayAir Technology is 1.07 times more volatile than Chengdu Xinzhu RoadBridge. It trades about -0.07 of its total potential returns per unit of risk. Chengdu Xinzhu RoadBridge is currently generating about 0.05 per unit of volatility. If you would invest 515.00 in Chengdu Xinzhu RoadBridge on September 1, 2024 and sell it today you would earn a total of 12.00 from holding Chengdu Xinzhu RoadBridge or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MayAir Technology Co vs. Chengdu Xinzhu RoadBridge
Performance |
| Timeline |
| MayAir Technology |
| Chengdu Xinzhu RoadBridge |
MayAir Technology and Chengdu Xinzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MayAir Technology and Chengdu Xinzhu
The main advantage of trading using opposite MayAir Technology and Chengdu Xinzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MayAir Technology position performs unexpectedly, Chengdu Xinzhu 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 Chengdu Xinzhu will offset losses from the drop in Chengdu Xinzhu's long position.| MayAir Technology vs. Cultural Investment Holdings | MayAir Technology vs. Gome Telecom Equipment | MayAir Technology vs. Bus Online Co | MayAir Technology vs. Holitech Technology Co |
| Chengdu Xinzhu vs. Kweichow Moutai Co | Chengdu Xinzhu vs. NAURA Technology Group | Chengdu Xinzhu vs. Zhejiang Orient Gene | Chengdu Xinzhu vs. APT Medical |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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