Correlation Between Gansu Huangtai and Ming Yang
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and Ming Yang Smart, you can compare the effects of market volatilities on Gansu Huangtai 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 Gansu Huangtai with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and Ming Yang.
Diversification Opportunities for Gansu Huangtai and Ming Yang
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Ming is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing 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 Gansu Huangtai 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 Gansu Huangtai Wine marketing 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 Gansu Huangtai i.e., Gansu Huangtai and Ming Yang go up and down completely randomly.
Pair Corralation between Gansu Huangtai and Ming Yang
Assuming the 90 days trading horizon Gansu Huangtai Wine marketing is expected to generate 2.47 times more return on investment than Ming Yang. However, Gansu Huangtai is 2.47 times more volatile than Ming Yang Smart. It trades about 0.15 of its potential returns per unit of risk. Ming Yang Smart is currently generating about -0.65 per unit of risk. If you would invest 1,481 in Gansu Huangtai Wine marketing on October 10, 2024 and sell it today you would earn a total of 236.00 from holding Gansu Huangtai Wine marketing or generate 15.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Huangtai Wine marketing vs. Ming Yang Smart
Performance |
| Timeline |
| Gansu Huangtai Wine |
| Ming Yang Smart |
Gansu Huangtai and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and Ming Yang
The main advantage of trading using opposite Gansu Huangtai and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai 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.| Gansu Huangtai vs. Beijing Kaiwen Education | Gansu Huangtai vs. Yindu Kitchen Equipment | Gansu Huangtai vs. BTG Hotels Group | Gansu Huangtai vs. Zhejiang Publishing Media |
| Ming Yang vs. Sharetronic Data Technology | Ming Yang vs. Guangzhou Ruoyuchen Information | Ming Yang vs. Zoje Resources Investment | Ming Yang vs. Shanghai Material Trading |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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