Correlation Between Zhejiang Kingland and Ming Yang
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By analyzing existing cross correlation between Zhejiang Kingland Pipeline and Ming Yang Smart, you can compare the effects of market volatilities on Zhejiang Kingland 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 Zhejiang Kingland with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Kingland and Ming Yang.
Diversification Opportunities for Zhejiang Kingland and Ming Yang
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Ming is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Kingland Pipeline 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 Zhejiang Kingland 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 Zhejiang Kingland Pipeline 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 Zhejiang Kingland i.e., Zhejiang Kingland and Ming Yang go up and down completely randomly.
Pair Corralation between Zhejiang Kingland and Ming Yang
Assuming the 90 days trading horizon Zhejiang Kingland Pipeline is expected to under-perform the Ming Yang. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Kingland Pipeline is 2.04 times less risky than Ming Yang. The stock trades about -0.05 of its potential returns per unit of risk. The Ming Yang Smart is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,253 in Ming Yang Smart on September 19, 2024 and sell it today you would earn a total of 81.00 from holding Ming Yang Smart or generate 6.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Kingland Pipeline vs. Ming Yang Smart
Performance |
| Timeline |
| Zhejiang Kingland |
| Ming Yang Smart |
Zhejiang Kingland and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Kingland and Ming Yang
The main advantage of trading using opposite Zhejiang Kingland and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Kingland 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.| Zhejiang Kingland vs. Jiangsu Zhongtian Technology | Zhejiang Kingland vs. Andon Health Co | Zhejiang Kingland vs. CITIC Securities Co | Zhejiang Kingland vs. Zoy Home Furnishing |
| Ming Yang vs. Great Sun Foods Co | Ming Yang vs. Guilin Seamild Foods | Ming Yang vs. Leaguer Shenzhen MicroElectronics | Ming Yang vs. HaiXin Foods Co |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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