Correlation Between MayAir Technology and Aba Chemicals
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By analyzing existing cross correlation between MayAir Technology Co and Aba Chemicals Corp, you can compare the effects of market volatilities on MayAir Technology and Aba Chemicals 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 Aba Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of MayAir Technology and Aba Chemicals.
Diversification Opportunities for MayAir Technology and Aba Chemicals
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MayAir and Aba is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding MayAir Technology Co and Aba Chemicals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aba Chemicals Corp 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 Aba Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aba Chemicals Corp has no effect on the direction of MayAir Technology i.e., MayAir Technology and Aba Chemicals go up and down completely randomly.
Pair Corralation between MayAir Technology and Aba Chemicals
Assuming the 90 days trading horizon MayAir Technology Co is expected to under-perform the Aba Chemicals. But the stock apears to be less risky and, when comparing its historical volatility, MayAir Technology Co is 1.13 times less risky than Aba Chemicals. The stock trades about -0.2 of its potential returns per unit of risk. The Aba Chemicals Corp is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest 917.00 in Aba Chemicals Corp on September 13, 2024 and sell it today you would lose (97.00) from holding Aba Chemicals Corp or give up 10.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MayAir Technology Co vs. Aba Chemicals Corp
Performance |
| Timeline |
| MayAir Technology |
| Aba Chemicals Corp |
MayAir Technology and Aba Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MayAir Technology and Aba Chemicals
The main advantage of trading using opposite MayAir Technology and Aba Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MayAir Technology position performs unexpectedly, Aba Chemicals 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 Aba Chemicals will offset losses from the drop in Aba Chemicals' long position.| MayAir Technology vs. New China Life | MayAir Technology vs. Ming Yang Smart | MayAir Technology vs. 159681 | MayAir Technology vs. 159005 |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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