Correlation Between MayAir Technology and Baoshan Iron
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By analyzing existing cross correlation between MayAir Technology Co and Baoshan Iron Steel, you can compare the effects of market volatilities on MayAir Technology and Baoshan Iron 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 Baoshan Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of MayAir Technology and Baoshan Iron.
Diversification Opportunities for MayAir Technology and Baoshan Iron
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MayAir and Baoshan is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding MayAir Technology Co and Baoshan Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baoshan Iron Steel 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 Baoshan Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baoshan Iron Steel has no effect on the direction of MayAir Technology i.e., MayAir Technology and Baoshan Iron go up and down completely randomly.
Pair Corralation between MayAir Technology and Baoshan Iron
Assuming the 90 days trading horizon MayAir Technology is expected to generate 1.31 times less return on investment than Baoshan Iron. In addition to that, MayAir Technology is 1.76 times more volatile than Baoshan Iron Steel. It trades about 0.01 of its total potential returns per unit of risk. Baoshan Iron Steel is currently generating about 0.02 per unit of volatility. If you would invest 602.00 in Baoshan Iron Steel on October 16, 2024 and sell it today you would earn a total of 49.00 from holding Baoshan Iron Steel or generate 8.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MayAir Technology Co vs. Baoshan Iron Steel
Performance |
| Timeline |
| MayAir Technology |
| Baoshan Iron Steel |
MayAir Technology and Baoshan Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MayAir Technology and Baoshan Iron
The main advantage of trading using opposite MayAir Technology and Baoshan Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MayAir Technology position performs unexpectedly, Baoshan Iron 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 Baoshan Iron will offset losses from the drop in Baoshan Iron's long position.| MayAir Technology vs. Wasu Media Holding | MayAir Technology vs. Ping An Insurance | MayAir Technology vs. Vats Liquor Chain | MayAir Technology vs. Ciwen Media Co |
| Baoshan Iron vs. Changchun BCHT Biotechnology | Baoshan Iron vs. Yili Chuanning Biotechnology | Baoshan Iron vs. MayAir Technology Co | Baoshan Iron vs. Liaoning Chengda Biotechnology |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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