Correlation Between Daoming OpticsChemical and Maxvision Technology
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By analyzing existing cross correlation between Daoming OpticsChemical Co and Maxvision Technology Corp, you can compare the effects of market volatilities on Daoming OpticsChemical and Maxvision Technology 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 Daoming OpticsChemical with a short position of Maxvision Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daoming OpticsChemical and Maxvision Technology.
Diversification Opportunities for Daoming OpticsChemical and Maxvision Technology
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Daoming and Maxvision is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Daoming OpticsChemical Co and Maxvision Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maxvision Technology Corp and Daoming OpticsChemical 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 Daoming OpticsChemical Co are associated (or correlated) with Maxvision Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maxvision Technology Corp has no effect on the direction of Daoming OpticsChemical i.e., Daoming OpticsChemical and Maxvision Technology go up and down completely randomly.
Pair Corralation between Daoming OpticsChemical and Maxvision Technology
Assuming the 90 days trading horizon Daoming OpticsChemical is expected to generate 1.18 times less return on investment than Maxvision Technology. In addition to that, Daoming OpticsChemical is 1.01 times more volatile than Maxvision Technology Corp. It trades about 0.06 of its total potential returns per unit of risk. Maxvision Technology Corp is currently generating about 0.07 per unit of volatility. If you would invest 2,013 in Maxvision Technology Corp on September 26, 2024 and sell it today you would earn a total of 483.00 from holding Maxvision Technology Corp or generate 23.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Daoming OpticsChemical Co vs. Maxvision Technology Corp
Performance |
Timeline |
Daoming OpticsChemical |
Maxvision Technology Corp |
Daoming OpticsChemical and Maxvision Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Daoming OpticsChemical and Maxvision Technology
The main advantage of trading using opposite Daoming OpticsChemical and Maxvision Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daoming OpticsChemical position performs unexpectedly, Maxvision Technology 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 Maxvision Technology will offset losses from the drop in Maxvision Technology's long position.Daoming OpticsChemical vs. Zijin Mining Group | Daoming OpticsChemical vs. Wanhua Chemical Group | Daoming OpticsChemical vs. Baoshan Iron Steel | Daoming OpticsChemical vs. Shandong Gold Mining |
Maxvision Technology vs. BeiGene | Maxvision Technology vs. Kweichow Moutai Co | Maxvision Technology vs. Beijing Roborock Technology | Maxvision Technology vs. G bits Network Technology |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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