Correlation Between MayAir Technology and Luyin Investment

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Can any of the company-specific risk be diversified away by investing in both MayAir Technology and Luyin Investment at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining MayAir Technology and Luyin Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MayAir Technology Co and Luyin Investment Group, you can compare the effects of market volatilities on MayAir Technology and Luyin Investment 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 Luyin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of MayAir Technology and Luyin Investment.

Diversification Opportunities for MayAir Technology and Luyin Investment

-0.05
  Correlation Coefficient

Good diversification

The 3 months correlation between MayAir and Luyin is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding MayAir Technology Co and Luyin Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luyin Investment 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 Luyin Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luyin Investment has no effect on the direction of MayAir Technology i.e., MayAir Technology and Luyin Investment go up and down completely randomly.

Pair Corralation between MayAir Technology and Luyin Investment

Assuming the 90 days trading horizon MayAir Technology Co is expected to under-perform the Luyin Investment. In addition to that, MayAir Technology is 1.13 times more volatile than Luyin Investment Group. It trades about -0.31 of its total potential returns per unit of risk. Luyin Investment Group is currently generating about -0.33 per unit of volatility. If you would invest  640.00  in Luyin Investment Group on October 12, 2024 and sell it today you would lose (73.00) from holding Luyin Investment Group or give up 11.41% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

MayAir Technology Co  vs.  Luyin Investment Group

 Performance 
       Timeline  
MayAir Technology 

Risk-Adjusted Performance

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Over the last 90 days MayAir Technology Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
Luyin Investment 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Weak
Over the last 90 days Luyin Investment Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Luyin Investment is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

MayAir Technology and Luyin Investment Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with MayAir Technology and Luyin Investment

The main advantage of trading using opposite MayAir Technology and Luyin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MayAir Technology position performs unexpectedly, Luyin Investment 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 Luyin Investment will offset losses from the drop in Luyin Investment's long position.
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The idea behind MayAir Technology Co and Luyin Investment Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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