Correlation Between Hunan Nanling and Ming Yang
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By analyzing existing cross correlation between Hunan Nanling Industrial and Ming Yang Smart, you can compare the effects of market volatilities on Hunan Nanling 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 Hunan Nanling with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Nanling and Ming Yang.
Diversification Opportunities for Hunan Nanling and Ming Yang
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hunan and Ming is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Nanling Industrial 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 Hunan Nanling 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 Hunan Nanling Industrial 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 Hunan Nanling i.e., Hunan Nanling and Ming Yang go up and down completely randomly.
Pair Corralation between Hunan Nanling and Ming Yang
Assuming the 90 days trading horizon Hunan Nanling Industrial is expected to generate 0.65 times more return on investment than Ming Yang. However, Hunan Nanling Industrial is 1.53 times less risky than Ming Yang. It trades about -0.39 of its potential returns per unit of risk. Ming Yang Smart is currently generating about -0.31 per unit of risk. If you would invest 1,153 in Hunan Nanling Industrial on November 3, 2024 and sell it today you would lose (123.00) from holding Hunan Nanling Industrial or give up 10.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Nanling Industrial vs. Ming Yang Smart
Performance |
| Timeline |
| Hunan Nanling Industrial |
| Ming Yang Smart |
Hunan Nanling and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Nanling and Ming Yang
The main advantage of trading using opposite Hunan Nanling and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Nanling 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.| Hunan Nanling vs. Shandong Polymer Biochemicals | Hunan Nanling vs. Easyhome New Retail | Hunan Nanling vs. Luolai Home Textile | Hunan Nanling vs. Do Fluoride Chemicals Co |
| Ming Yang vs. Guangzhou KDT Machinery | Ming Yang vs. Longjian Road Bridge | Ming Yang vs. Tjk Machinery Tianjin | Ming Yang vs. Shenzhen Zhongzhuang Construction |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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