Correlation Between Hubei Xingfa and Ming Yang
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By analyzing existing cross correlation between Hubei Xingfa Chemicals and Ming Yang Smart, you can compare the effects of market volatilities on Hubei Xingfa 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 Hubei Xingfa with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Xingfa and Ming Yang.
Diversification Opportunities for Hubei Xingfa and Ming Yang
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hubei and Ming is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Xingfa Chemicals 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 Hubei Xingfa 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 Hubei Xingfa Chemicals 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 Hubei Xingfa i.e., Hubei Xingfa and Ming Yang go up and down completely randomly.
Pair Corralation between Hubei Xingfa and Ming Yang
Assuming the 90 days trading horizon Hubei Xingfa Chemicals is expected to generate 0.91 times more return on investment than Ming Yang. However, Hubei Xingfa Chemicals is 1.1 times less risky than Ming Yang. It trades about -0.02 of its potential returns per unit of risk. Ming Yang Smart is currently generating about -0.04 per unit of risk. If you would invest 3,115 in Hubei Xingfa Chemicals on August 31, 2024 and sell it today you would lose (812.00) from holding Hubei Xingfa Chemicals or give up 26.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Xingfa Chemicals vs. Ming Yang Smart
Performance |
| Timeline |
| Hubei Xingfa Chemicals |
| Ming Yang Smart |
Hubei Xingfa and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Xingfa and Ming Yang
The main advantage of trading using opposite Hubei Xingfa and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Xingfa 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.| Hubei Xingfa vs. Zijin Mining Group | Hubei Xingfa vs. Baoshan Iron Steel | Hubei Xingfa vs. Rongsheng Petrochemical Co | Hubei Xingfa vs. Hoshine Silicon Ind |
| Ming Yang vs. Xinjiang Baodi Mining | Ming Yang vs. Suzhou Weizhixiang Food | Ming Yang vs. Guilin Seamild Foods | Ming Yang vs. Chengtun Mining 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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