Correlation Between Guangdong Tianhe and Ming Yang
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By analyzing existing cross correlation between Guangdong Tianhe Agricultural and Ming Yang Smart, you can compare the effects of market volatilities on Guangdong Tianhe 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 Tianhe with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Tianhe and Ming Yang.
Diversification Opportunities for Guangdong Tianhe and Ming Yang
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Ming is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Tianhe Agricultural 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 Tianhe 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 Tianhe Agricultural 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 Tianhe i.e., Guangdong Tianhe and Ming Yang go up and down completely randomly.
Pair Corralation between Guangdong Tianhe and Ming Yang
Assuming the 90 days trading horizon Guangdong Tianhe Agricultural is expected to under-perform the Ming Yang. In addition to that, Guangdong Tianhe is 1.23 times more volatile than Ming Yang Smart. It trades about -0.03 of its total potential returns per unit of risk. Ming Yang Smart is currently generating about 0.05 per unit of volatility. If you would invest 1,275 in Ming Yang Smart on September 26, 2024 and sell it today you would earn a total of 31.00 from holding Ming Yang Smart or generate 2.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Tianhe Agricultural vs. Ming Yang Smart
Performance |
| Timeline |
| Guangdong Tianhe Agr |
| Ming Yang Smart |
Guangdong Tianhe and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Tianhe and Ming Yang
The main advantage of trading using opposite Guangdong Tianhe and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Tianhe 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 Tianhe vs. Zijin Mining Group | Guangdong Tianhe vs. Wanhua Chemical Group | Guangdong Tianhe vs. Baoshan Iron Steel | Guangdong Tianhe vs. Shandong Gold Mining |
| Ming Yang vs. Chengdu Xinzhu RoadBridge | Ming Yang vs. MayAir Technology Co | Ming Yang vs. Longjian Road Bridge | Ming Yang vs. Jinsanjiang Silicon Material |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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