Correlation Between MayAir Technology and Shanghai Shuixing
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By analyzing existing cross correlation between MayAir Technology Co and Shanghai Shuixing Home, you can compare the effects of market volatilities on MayAir Technology and Shanghai Shuixing 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 Shanghai Shuixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of MayAir Technology and Shanghai Shuixing.
Diversification Opportunities for MayAir Technology and Shanghai Shuixing
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MayAir and Shanghai is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding MayAir Technology Co and Shanghai Shuixing Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shuixing Home 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 Shanghai Shuixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shuixing Home has no effect on the direction of MayAir Technology i.e., MayAir Technology and Shanghai Shuixing go up and down completely randomly.
Pair Corralation between MayAir Technology and Shanghai Shuixing
Assuming the 90 days trading horizon MayAir Technology is expected to generate 2.1 times less return on investment than Shanghai Shuixing. In addition to that, MayAir Technology is 1.35 times more volatile than Shanghai Shuixing Home. It trades about 0.01 of its total potential returns per unit of risk. Shanghai Shuixing Home is currently generating about 0.03 per unit of volatility. If you would invest 1,296 in Shanghai Shuixing Home on November 29, 2024 and sell it today you would earn a total of 272.00 from holding Shanghai Shuixing Home or generate 20.99% 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. Shanghai Shuixing Home
Performance |
| Timeline |
| MayAir Technology |
| Shanghai Shuixing Home |
MayAir Technology and Shanghai Shuixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MayAir Technology and Shanghai Shuixing
The main advantage of trading using opposite MayAir Technology and Shanghai Shuixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MayAir Technology position performs unexpectedly, Shanghai Shuixing 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 Shanghai Shuixing will offset losses from the drop in Shanghai Shuixing's long position.| MayAir Technology vs. Agricultural Bank of | MayAir Technology vs. Industrial and Commercial | MayAir Technology vs. Bank of China | MayAir Technology vs. PetroChina Co Ltd |
| Shanghai Shuixing vs. Anhui Transport Consulting | Shanghai Shuixing vs. Nanxing Furniture Machinery | Shanghai Shuixing vs. Guangzhou Shangpin Home | Shanghai Shuixing vs. Marssenger Kitchenware 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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