Correlation Between Fujian Newland and Ming Yang
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By analyzing existing cross correlation between Fujian Newland Computer and Ming Yang Smart, you can compare the effects of market volatilities on Fujian Newland 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 Fujian Newland with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Newland and Ming Yang.
Diversification Opportunities for Fujian Newland and Ming Yang
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and Ming is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Newland Computer 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 Fujian Newland 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 Fujian Newland Computer 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 Fujian Newland i.e., Fujian Newland and Ming Yang go up and down completely randomly.
Pair Corralation between Fujian Newland and Ming Yang
Assuming the 90 days trading horizon Fujian Newland Computer is expected to generate 1.54 times more return on investment than Ming Yang. However, Fujian Newland is 1.54 times more volatile than Ming Yang Smart. It trades about 0.25 of its potential returns per unit of risk. Ming Yang Smart is currently generating about 0.09 per unit of risk. If you would invest 1,649 in Fujian Newland Computer on August 25, 2024 and sell it today you would earn a total of 356.00 from holding Fujian Newland Computer or generate 21.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Newland Computer vs. Ming Yang Smart
Performance |
| Timeline |
| Fujian Newland Computer |
| Ming Yang Smart |
Fujian Newland and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Newland and Ming Yang
The main advantage of trading using opposite Fujian Newland and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Newland 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.| Fujian Newland vs. Ming Yang Smart | Fujian Newland vs. 159005 | Fujian Newland vs. Loctek Ergonomic Technology | Fujian Newland vs. Xiamen East Asia |
| Ming Yang vs. Hoshine Silicon Ind | Ming Yang vs. Miracll Chemicals Co | Ming Yang vs. Vontron Technology Co | Ming Yang vs. Lander Sports Development |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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