Correlation Between Maxvision Technology and China Railway
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By analyzing existing cross correlation between Maxvision Technology Corp and China Railway Construction, you can compare the effects of market volatilities on Maxvision 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 Maxvision Technology with a short position of China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxvision Technology and China Railway.
Diversification Opportunities for Maxvision Technology and China Railway
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Maxvision and China is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Maxvision Technology Corp 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 Maxvision 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 Maxvision Technology Corp 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 Maxvision Technology i.e., Maxvision Technology and China Railway go up and down completely randomly.
Pair Corralation between Maxvision Technology and China Railway
Assuming the 90 days trading horizon Maxvision Technology Corp is expected to under-perform the China Railway. In addition to that, Maxvision Technology is 1.68 times more volatile than China Railway Construction. It trades about -0.01 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 406.00 in China Railway Construction on September 26, 2024 and sell it today you would earn a total of 55.00 from holding China Railway Construction or generate 13.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Maxvision Technology Corp vs. China Railway Construction
Performance |
Timeline |
Maxvision Technology Corp |
China Railway Constr |
Maxvision Technology and China Railway Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Maxvision Technology and China Railway
The main advantage of trading using opposite Maxvision Technology and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maxvision 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.Maxvision Technology vs. BeiGene | Maxvision Technology vs. Kweichow Moutai Co | Maxvision Technology vs. Beijing Roborock Technology | Maxvision Technology vs. G bits Network Technology |
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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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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