Correlation Between Weichai Heavy and Ming Yang
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By analyzing existing cross correlation between Weichai Heavy Machinery and Ming Yang Smart, you can compare the effects of market volatilities on Weichai Heavy 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 Weichai Heavy with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weichai Heavy and Ming Yang.
Diversification Opportunities for Weichai Heavy and Ming Yang
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Weichai and Ming is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Weichai Heavy Machinery 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 Weichai Heavy 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 Weichai Heavy Machinery 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 Weichai Heavy i.e., Weichai Heavy and Ming Yang go up and down completely randomly.
Pair Corralation between Weichai Heavy and Ming Yang
Assuming the 90 days trading horizon Weichai Heavy Machinery is expected to generate 2.33 times more return on investment than Ming Yang. However, Weichai Heavy is 2.33 times more volatile than Ming Yang Smart. It trades about 0.23 of its potential returns per unit of risk. Ming Yang Smart is currently generating about -0.36 per unit of risk. If you would invest 1,684 in Weichai Heavy Machinery on October 26, 2024 and sell it today you would earn a total of 462.00 from holding Weichai Heavy Machinery or generate 27.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weichai Heavy Machinery vs. Ming Yang Smart
Performance |
| Timeline |
| Weichai Heavy Machinery |
| Ming Yang Smart |
Weichai Heavy and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weichai Heavy and Ming Yang
The main advantage of trading using opposite Weichai Heavy and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weichai Heavy 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.| Weichai Heavy vs. Ming Yang Smart | Weichai Heavy vs. 159681 | Weichai Heavy vs. 159005 | Weichai Heavy vs. Loctek Ergonomic Technology |
| Ming Yang vs. Zhonghang Electronic Measuring | Ming Yang vs. Sichuan Yahua Industrial | Ming Yang vs. Semiconductor Manufacturing Electronics | Ming Yang vs. Guangdong Ellington Electronics |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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