Correlation Between Guangzhou Hongli and Ming Yang
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By analyzing existing cross correlation between Guangzhou Hongli Opto and Ming Yang Smart, you can compare the effects of market volatilities on Guangzhou Hongli 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 Guangzhou Hongli with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Hongli and Ming Yang.
Diversification Opportunities for Guangzhou Hongli and Ming Yang
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Ming is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Hongli Opto 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 Guangzhou Hongli 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 Guangzhou Hongli Opto 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 Guangzhou Hongli i.e., Guangzhou Hongli and Ming Yang go up and down completely randomly.
Pair Corralation between Guangzhou Hongli and Ming Yang
Assuming the 90 days trading horizon Guangzhou Hongli Opto is expected to generate 1.28 times more return on investment than Ming Yang. However, Guangzhou Hongli is 1.28 times more volatile than Ming Yang Smart. It trades about -0.36 of its potential returns per unit of risk. Ming Yang Smart is currently generating about -0.58 per unit of risk. If you would invest 818.00 in Guangzhou Hongli Opto on October 15, 2024 and sell it today you would lose (162.00) from holding Guangzhou Hongli Opto or give up 19.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Hongli Opto vs. Ming Yang Smart
Performance |
| Timeline |
| Guangzhou Hongli Opto |
| Ming Yang Smart |
Guangzhou Hongli and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Hongli and Ming Yang
The main advantage of trading using opposite Guangzhou Hongli and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Hongli 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.| Guangzhou Hongli vs. Montage Technology Co | Guangzhou Hongli vs. HanS Laser Tech | Guangzhou Hongli vs. Sharetronic Data Technology | Guangzhou Hongli vs. CITIC Guoan Information |
| Ming Yang vs. Ye Chiu Metal | Ming Yang vs. Aluminum Corp of | Ming Yang vs. ZYF Lopsking Aluminum | Ming Yang vs. Lecron Energy Saving |
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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