Correlation Between Guangzhou Shangpin and Maxvision Technology
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By analyzing existing cross correlation between Guangzhou Shangpin Home and Maxvision Technology Corp, you can compare the effects of market volatilities on Guangzhou Shangpin 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 Guangzhou Shangpin with a short position of Maxvision Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Shangpin and Maxvision Technology.
Diversification Opportunities for Guangzhou Shangpin and Maxvision Technology
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Maxvision is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Shangpin Home 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 Guangzhou Shangpin 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 Guangzhou Shangpin Home 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 Guangzhou Shangpin i.e., Guangzhou Shangpin and Maxvision Technology go up and down completely randomly.
Pair Corralation between Guangzhou Shangpin and Maxvision Technology
Assuming the 90 days trading horizon Guangzhou Shangpin is expected to generate 1.42 times less return on investment than Maxvision Technology. But when comparing it to its historical volatility, Guangzhou Shangpin Home is 1.05 times less risky than Maxvision Technology. It trades about 0.17 of its potential returns per unit of risk. Maxvision Technology Corp is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,300 in Maxvision Technology Corp on September 6, 2024 and sell it today you would earn a total of 308.00 from holding Maxvision Technology Corp or generate 13.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Guangzhou Shangpin Home vs. Maxvision Technology Corp
Performance |
Timeline |
Guangzhou Shangpin Home |
Maxvision Technology Corp |
Guangzhou Shangpin and Maxvision Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangzhou Shangpin and Maxvision Technology
The main advantage of trading using opposite Guangzhou Shangpin and Maxvision Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Shangpin 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.Guangzhou Shangpin vs. Huafa Industrial Co | Guangzhou Shangpin vs. Contemporary Amperex Technology | Guangzhou Shangpin vs. Gansu Jiu Steel | Guangzhou Shangpin vs. Shandong Mining Machinery |
Maxvision Technology vs. Industrial and Commercial | Maxvision Technology vs. Agricultural Bank of | Maxvision Technology vs. China Construction Bank | Maxvision Technology vs. Bank of China |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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