Correlation Between MayAir Technology and Hangzhou Minsheng
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By analyzing existing cross correlation between MayAir Technology Co and Hangzhou Minsheng Healthcare, you can compare the effects of market volatilities on MayAir Technology and Hangzhou Minsheng 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 Hangzhou Minsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of MayAir Technology and Hangzhou Minsheng.
Diversification Opportunities for MayAir Technology and Hangzhou Minsheng
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MayAir and Hangzhou is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding MayAir Technology Co and Hangzhou Minsheng Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Minsheng 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 Hangzhou Minsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Minsheng has no effect on the direction of MayAir Technology i.e., MayAir Technology and Hangzhou Minsheng go up and down completely randomly.
Pair Corralation between MayAir Technology and Hangzhou Minsheng
Assuming the 90 days trading horizon MayAir Technology Co is expected to generate 0.84 times more return on investment than Hangzhou Minsheng. However, MayAir Technology Co is 1.19 times less risky than Hangzhou Minsheng. It trades about -0.31 of its potential returns per unit of risk. Hangzhou Minsheng Healthcare is currently generating about -0.27 per unit of risk. If you would invest 3,700 in MayAir Technology Co on October 12, 2024 and sell it today you would lose (451.00) from holding MayAir Technology Co or give up 12.19% 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. Hangzhou Minsheng Healthcare
Performance |
| Timeline |
| MayAir Technology |
| Hangzhou Minsheng |
MayAir Technology and Hangzhou Minsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MayAir Technology and Hangzhou Minsheng
The main advantage of trading using opposite MayAir Technology and Hangzhou Minsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MayAir Technology position performs unexpectedly, Hangzhou Minsheng 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 Hangzhou Minsheng will offset losses from the drop in Hangzhou Minsheng's long position.| MayAir Technology vs. Sunwave Communications Co | MayAir Technology vs. Nantong Haixing Electronics | MayAir Technology vs. Techshine Electronics Co | MayAir Technology vs. Tongyu Communication |
| Hangzhou Minsheng vs. Ningbo Jintian Copper | Hangzhou Minsheng vs. Hainan Mining Co | Hangzhou Minsheng vs. Shanghai Yanpu Metal | Hangzhou Minsheng vs. MayAir Technology Co |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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