Correlation Between Hubei Yingtong and Ming Yang
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By analyzing existing cross correlation between Hubei Yingtong Telecommunication and Ming Yang Smart, you can compare the effects of market volatilities on Hubei Yingtong 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 Hubei Yingtong with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Yingtong and Ming Yang.
Diversification Opportunities for Hubei Yingtong and Ming Yang
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hubei and Ming is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Yingtong Telecommunicati 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 Hubei Yingtong 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 Hubei Yingtong 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 Hubei Yingtong i.e., Hubei Yingtong and Ming Yang go up and down completely randomly.
Pair Corralation between Hubei Yingtong and Ming Yang
Assuming the 90 days trading horizon Hubei Yingtong Telecommunication is expected to generate 3.04 times more return on investment than Ming Yang. However, Hubei Yingtong is 3.04 times more volatile than Ming Yang Smart. It trades about -0.04 of its potential returns per unit of risk. Ming Yang Smart is currently generating about -0.6 per unit of risk. If you would invest 1,234 in Hubei Yingtong Telecommunication on October 9, 2024 and sell it today you would lose (115.00) from holding Hubei Yingtong Telecommunication or give up 9.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Yingtong Telecommunicati vs. Ming Yang Smart
Performance |
| Timeline |
| Hubei Yingtong Telec |
| Ming Yang Smart |
Hubei Yingtong and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Yingtong and Ming Yang
The main advantage of trading using opposite Hubei Yingtong and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Yingtong 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.| Hubei Yingtong vs. Hangzhou Arcvideo Technology | Hubei Yingtong vs. Shanghai Action Education | Hubei Yingtong vs. Jiangsu Phoenix Publishing | Hubei Yingtong vs. Beijing Kingsoft Office |
| Ming Yang vs. Talkweb Information System | Ming Yang vs. Bank of Communications | Ming Yang vs. Xiangyang Automobile Bearing | Ming Yang vs. Hygon Information Technology |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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