Correlation Between Dongfeng Automobile and Ming Yang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dongfeng Automobile Co and Ming Yang Smart, you can compare the effects of market volatilities on Dongfeng Automobile 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 Dongfeng Automobile with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongfeng Automobile and Ming Yang.
Diversification Opportunities for Dongfeng Automobile and Ming Yang
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongfeng and Ming is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Dongfeng Automobile 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 Dongfeng Automobile 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 Dongfeng Automobile 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 Dongfeng Automobile i.e., Dongfeng Automobile and Ming Yang go up and down completely randomly.
Pair Corralation between Dongfeng Automobile and Ming Yang
Assuming the 90 days trading horizon Dongfeng Automobile Co is expected to generate 1.21 times more return on investment than Ming Yang. However, Dongfeng Automobile is 1.21 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 -0.01 per unit of risk. If you would invest 574.00 in Dongfeng Automobile Co on October 30, 2024 and sell it today you would earn a total of 91.00 from holding Dongfeng Automobile Co or generate 15.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongfeng Automobile Co vs. Ming Yang Smart
Performance |
| Timeline |
| Dongfeng Automobile |
| Ming Yang Smart |
Dongfeng Automobile and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongfeng Automobile and Ming Yang
The main advantage of trading using opposite Dongfeng Automobile and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongfeng Automobile 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.| Dongfeng Automobile vs. Miracll Chemicals Co | Dongfeng Automobile vs. Aba Chemicals Corp | Dongfeng Automobile vs. Dr Peng Telecom | Dongfeng Automobile vs. Ziel Home Furnishing |
| Ming Yang vs. Sino Platinum Metals Co | Ming Yang vs. Pengxin International Mining | Ming Yang vs. Xinjiang Communications Construction | Ming Yang vs. Eastern Communications Co |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| 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 | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |