Correlation Between Shenzhen Longsys and Ming Yang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Longsys Electronics and Ming Yang Smart, you can compare the effects of market volatilities on Shenzhen Longsys 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 Shenzhen Longsys with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Longsys and Ming Yang.
Diversification Opportunities for Shenzhen Longsys and Ming Yang
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Ming is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Longsys Electronics 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 Shenzhen Longsys 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 Shenzhen Longsys Electronics 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 Shenzhen Longsys i.e., Shenzhen Longsys and Ming Yang go up and down completely randomly.
Pair Corralation between Shenzhen Longsys and Ming Yang
Assuming the 90 days trading horizon Shenzhen Longsys is expected to generate 1.33 times less return on investment than Ming Yang. In addition to that, Shenzhen Longsys is 1.47 times more volatile than Ming Yang Smart. It trades about 0.09 of its total potential returns per unit of risk. Ming Yang Smart is currently generating about 0.18 per unit of volatility. If you would invest 903.00 in Ming Yang Smart on August 29, 2024 and sell it today you would earn a total of 349.00 from holding Ming Yang Smart or generate 38.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Longsys Electronics vs. Ming Yang Smart
Performance |
| Timeline |
| Shenzhen Longsys Ele |
| Ming Yang Smart |
Shenzhen Longsys and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Longsys and Ming Yang
The main advantage of trading using opposite Shenzhen Longsys and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Longsys 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.| Shenzhen Longsys vs. Beijing Wandong Medical | Shenzhen Longsys vs. Cowealth Medical China | Shenzhen Longsys vs. Winner Medical Co | Shenzhen Longsys vs. Jiangsu Jinling Sports |
| Ming Yang vs. Kingsignal Technology Co | Ming Yang vs. Eastern Air Logistics | Ming Yang vs. Harbin Air Conditioning | Ming Yang vs. Oppein Home Group |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |