Correlation Between Hongrun Construction and Ming Yang
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By analyzing existing cross correlation between Hongrun Construction Group and Ming Yang Smart, you can compare the effects of market volatilities on Hongrun Construction 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 Hongrun Construction with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hongrun Construction and Ming Yang.
Diversification Opportunities for Hongrun Construction and Ming Yang
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hongrun and Ming is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Hongrun Construction Group 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 Hongrun Construction 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 Hongrun Construction Group 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 Hongrun Construction i.e., Hongrun Construction and Ming Yang go up and down completely randomly.
Pair Corralation between Hongrun Construction and Ming Yang
Assuming the 90 days trading horizon Hongrun Construction Group is expected to generate 1.29 times more return on investment than Ming Yang. However, Hongrun Construction is 1.29 times more volatile than Ming Yang Smart. It trades about 0.12 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 406.00 in Hongrun Construction Group on August 29, 2024 and sell it today you would earn a total of 30.00 from holding Hongrun Construction Group or generate 7.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hongrun Construction Group vs. Ming Yang Smart
Performance |
| Timeline |
| Hongrun Construction |
| Ming Yang Smart |
Hongrun Construction and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hongrun Construction and Ming Yang
The main advantage of trading using opposite Hongrun Construction and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hongrun Construction 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.| Hongrun Construction vs. Ming Yang Smart | Hongrun Construction vs. 159681 | Hongrun Construction vs. 159005 | Hongrun Construction vs. Loctek Ergonomic Technology |
| Ming Yang vs. Northern United Publishing | Ming Yang vs. Southern PublishingMedia Co | Ming Yang vs. Guangzhou Haige Communications | Ming Yang vs. China Publishing Media |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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