Correlation Between MayAir Technology and China Railway
Specify exactly 2 symbols:
By analyzing existing cross correlation between MayAir Technology Co and China Railway Construction, you can compare the effects of market volatilities on MayAir Technology and China Railway 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 China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of MayAir Technology and China Railway.
Diversification Opportunities for MayAir Technology and China Railway
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MayAir and China is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding MayAir Technology Co and China Railway Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Railway Constr 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 China Railway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Railway Constr has no effect on the direction of MayAir Technology i.e., MayAir Technology and China Railway go up and down completely randomly.
Pair Corralation between MayAir Technology and China Railway
Assuming the 90 days trading horizon MayAir Technology is expected to generate 1.4 times less return on investment than China Railway. In addition to that, MayAir Technology is 1.36 times more volatile than China Railway Construction. It trades about 0.02 of its total potential returns per unit of risk. China Railway Construction is currently generating about 0.03 per unit of volatility. If you would invest 741.00 in China Railway Construction on September 3, 2024 and sell it today you would earn a total of 184.00 from holding China Railway Construction or generate 24.83% 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. China Railway Construction
Performance |
| Timeline |
| MayAir Technology |
| China Railway Constr |
MayAir Technology and China Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MayAir Technology and China Railway
The main advantage of trading using opposite MayAir Technology and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MayAir Technology position performs unexpectedly, China Railway 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 China Railway will offset losses from the drop in China Railway's long position.| MayAir Technology vs. Jiangsu Financial Leasing | MayAir Technology vs. Jiugui Liquor Co | MayAir Technology vs. Guangdong Qunxing Toys | MayAir Technology vs. Vontron Technology Co |
| China Railway vs. Hainan Mining Co | China Railway vs. Hengli Industrial Development | China Railway vs. Guangzhou Tinci Materials | China Railway vs. Tibet Huayu Mining |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |