Correlation Between Guangdong Shenglu and Ming Yang
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Ming Yang Smart, you can compare the effects of market volatilities on Guangdong Shenglu 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 Guangdong Shenglu with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Ming Yang.
Diversification Opportunities for Guangdong Shenglu and Ming Yang
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Ming is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic 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 Guangdong Shenglu 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 Guangdong Shenglu Telecommunication 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 Guangdong Shenglu i.e., Guangdong Shenglu and Ming Yang go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Ming Yang
Assuming the 90 days trading horizon Guangdong Shenglu is expected to generate 1.13 times less return on investment than Ming Yang. In addition to that, Guangdong Shenglu is 1.01 times more volatile than Ming Yang Smart. It trades about 0.17 of its total potential returns per unit of risk. Ming Yang Smart is currently generating about 0.19 per unit of volatility. If you would invest 900.00 in Ming Yang Smart on August 28, 2024 and sell it today you would earn a total of 375.00 from holding Ming Yang Smart or generate 41.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Ming Yang Smart
Performance |
| Timeline |
| Guangdong Shenglu |
| Ming Yang Smart |
Guangdong Shenglu and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Ming Yang
The main advantage of trading using opposite Guangdong Shenglu and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu 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.| Guangdong Shenglu vs. Shenzhen MYS Environmental | Guangdong Shenglu vs. AVIC Fund Management | Guangdong Shenglu vs. Shenzhen Bingchuan Network | Guangdong Shenglu vs. Penghua Shenzhen Energy |
| Ming Yang vs. Hubei Xingfa Chemicals | Ming Yang vs. JCHX Mining Management | Ming Yang vs. Nexchip Semiconductor Corp | Ming Yang vs. Uroica Mining Safety |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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