Correlation Between North Huajin and Ming Yang
Specify exactly 2 symbols:
By analyzing existing cross correlation between North Huajin Chemical and Ming Yang Smart, you can compare the effects of market volatilities on North Huajin and Ming Yang 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 North Huajin with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Huajin and Ming Yang.
Diversification Opportunities for North Huajin and Ming Yang
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between North and Ming is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding North Huajin Chemical and Ming Yang Smart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ming Yang Smart and North Huajin 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 North Huajin Chemical are associated (or correlated) with Ming Yang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ming Yang Smart has no effect on the direction of North Huajin i.e., North Huajin and Ming Yang go up and down completely randomly.
Pair Corralation between North Huajin and Ming Yang
Assuming the 90 days trading horizon North Huajin Chemical is expected to under-perform the Ming Yang. In addition to that, North Huajin is 1.09 times more volatile than Ming Yang Smart. It trades about -0.02 of its total potential returns per unit of risk. Ming Yang Smart is currently generating about 0.25 per unit of volatility. If you would invest 1,170 in Ming Yang Smart on August 30, 2024 and sell it today you would earn a total of 212.00 from holding Ming Yang Smart or generate 18.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
North Huajin Chemical vs. Ming Yang Smart
Performance |
| Timeline |
| North Huajin Chemical |
| Ming Yang Smart |
North Huajin and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Huajin and Ming Yang
The main advantage of trading using opposite North Huajin and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Huajin position performs unexpectedly, Ming Yang 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 Ming Yang will offset losses from the drop in Ming Yang's long position.| North Huajin vs. Zijin Mining Group | North Huajin vs. Wanhua Chemical Group | North Huajin vs. Baoshan Iron Steel | North Huajin vs. Shandong Gold Mining |
| Ming Yang vs. Fujian Newland Computer | Ming Yang vs. ROPEOK Technology Group | Ming Yang vs. Guangzhou Haige Communications | Ming Yang vs. Shanghai CEO Environmental |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |