Correlation Between Zhejiang Huatong and Ming Yang
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By analyzing existing cross correlation between Zhejiang Huatong Meat and Ming Yang Smart, you can compare the effects of market volatilities on Zhejiang Huatong 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 Huatong with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Huatong and Ming Yang.
Diversification Opportunities for Zhejiang Huatong and Ming Yang
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Ming is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Huatong Meat 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 Huatong 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 Huatong Meat 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 Huatong i.e., Zhejiang Huatong and Ming Yang go up and down completely randomly.
Pair Corralation between Zhejiang Huatong and Ming Yang
Assuming the 90 days trading horizon Zhejiang Huatong Meat is expected to under-perform the Ming Yang. In addition to that, Zhejiang Huatong is 1.11 times more volatile than Ming Yang Smart. It trades about -0.04 of its total potential returns per unit of risk. Ming Yang Smart is currently generating about 0.1 per unit of volatility. If you would invest 944.00 in Ming Yang Smart on September 26, 2024 and sell it today you would earn a total of 338.00 from holding Ming Yang Smart or generate 35.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Huatong Meat vs. Ming Yang Smart
Performance |
| Timeline |
| Zhejiang Huatong Meat |
| Ming Yang Smart |
Zhejiang Huatong and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Huatong and Ming Yang
The main advantage of trading using opposite Zhejiang Huatong and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Huatong 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 Huatong vs. Sino Platinum Metals Co | Zhejiang Huatong vs. Shaanxi Meineng Clean | Zhejiang Huatong vs. Xizi Clean Energy | Zhejiang Huatong vs. Ningbo Fujia Industrial |
| Ming Yang vs. Healthcare Co | Ming Yang vs. Sanbo Hospital Management | Ming Yang vs. Everjoy Health Group | Ming Yang vs. Huaxia Eye Hospital |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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