Correlation Between MayAir Technology and Xiamen Bank
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By analyzing existing cross correlation between MayAir Technology Co and Xiamen Bank Co, you can compare the effects of market volatilities on MayAir Technology and Xiamen Bank 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 Xiamen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of MayAir Technology and Xiamen Bank.
Diversification Opportunities for MayAir Technology and Xiamen Bank
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MayAir and Xiamen is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding MayAir Technology Co and Xiamen Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Bank 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 Xiamen Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Bank has no effect on the direction of MayAir Technology i.e., MayAir Technology and Xiamen Bank go up and down completely randomly.
Pair Corralation between MayAir Technology and Xiamen Bank
Assuming the 90 days trading horizon MayAir Technology Co is expected to generate 1.27 times more return on investment than Xiamen Bank. However, MayAir Technology is 1.27 times more volatile than Xiamen Bank Co. It trades about -0.07 of its potential returns per unit of risk. Xiamen Bank Co is currently generating about -0.12 per unit of risk. If you would invest 3,460 in MayAir Technology Co on October 30, 2024 and sell it today you would lose (111.00) from holding MayAir Technology Co or give up 3.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MayAir Technology Co vs. Xiamen Bank Co
Performance |
| Timeline |
| MayAir Technology |
| Xiamen Bank |
MayAir Technology and Xiamen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MayAir Technology and Xiamen Bank
The main advantage of trading using opposite MayAir Technology and Xiamen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MayAir Technology position performs unexpectedly, Xiamen Bank 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 Xiamen Bank will offset losses from the drop in Xiamen Bank's long position.| MayAir Technology vs. China Petroleum Chemical | MayAir Technology vs. PetroChina Co Ltd | MayAir Technology vs. China State Construction | MayAir Technology vs. China Railway Group |
| Xiamen Bank vs. Tibet Huayu Mining | Xiamen Bank vs. Guangzhou Haozhi Industrial | Xiamen Bank vs. Qingdao Choho Industrial | Xiamen Bank vs. Bosera CMSK Industrial |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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