Correlation Between Hualan Group and Ming Yang
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By analyzing existing cross correlation between Hualan Group Co and Ming Yang Smart, you can compare the effects of market volatilities on Hualan Group 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 Hualan Group with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hualan Group and Ming Yang.
Diversification Opportunities for Hualan Group and Ming Yang
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hualan and Ming is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Hualan Group Co 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 Hualan Group 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 Hualan Group Co 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 Hualan Group i.e., Hualan Group and Ming Yang go up and down completely randomly.
Pair Corralation between Hualan Group and Ming Yang
Assuming the 90 days trading horizon Hualan Group Co is expected to generate 1.71 times more return on investment than Ming Yang. However, Hualan Group is 1.71 times more volatile than Ming Yang Smart. It trades about 0.03 of its potential returns per unit of risk. Ming Yang Smart is currently generating about -0.07 per unit of risk. If you would invest 1,440 in Hualan Group Co on October 22, 2024 and sell it today you would earn a total of 217.00 from holding Hualan Group Co or generate 15.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Hualan Group Co vs. Ming Yang Smart
Performance |
| Timeline |
| Hualan Group |
| Ming Yang Smart |
Hualan Group and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hualan Group and Ming Yang
The main advantage of trading using opposite Hualan Group and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hualan Group 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.| Hualan Group vs. Shenzhen MYS Environmental | Hualan Group vs. AVIC Fund Management | Hualan Group vs. Haoxiangni Jujube Co | Hualan Group vs. Shenzhen Bingchuan Network |
| Ming Yang vs. Anhui Gujing Distillery | Ming Yang vs. Harbin Hatou Investment | Ming Yang vs. Shandong Rike Chemical | Ming Yang vs. Citic Guoan Wine |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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