Correlation Between Tengda Construction and Ming Yang
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By analyzing existing cross correlation between Tengda Construction Group and Ming Yang Smart, you can compare the effects of market volatilities on Tengda Construction 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 Tengda Construction with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tengda Construction and Ming Yang.
Diversification Opportunities for Tengda Construction and Ming Yang
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tengda and Ming is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Tengda Construction Group 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 Tengda Construction 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 Tengda Construction Group 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 Tengda Construction i.e., Tengda Construction and Ming Yang go up and down completely randomly.
Pair Corralation between Tengda Construction and Ming Yang
Assuming the 90 days trading horizon Tengda Construction Group is expected to generate 0.93 times more return on investment than Ming Yang. However, Tengda Construction Group is 1.08 times less risky than Ming Yang. It trades about -0.41 of its potential returns per unit of risk. Ming Yang Smart is currently generating about -0.46 per unit of risk. If you would invest 269.00 in Tengda Construction Group on October 7, 2024 and sell it today you would lose (46.00) from holding Tengda Construction Group or give up 17.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tengda Construction Group vs. Ming Yang Smart
Performance |
| Timeline |
| Tengda Construction |
| Ming Yang Smart |
Tengda Construction and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tengda Construction and Ming Yang
The main advantage of trading using opposite Tengda Construction and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tengda Construction 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.| Tengda Construction vs. BeiGene | Tengda Construction vs. G bits Network Technology | Tengda Construction vs. China Mobile Limited | Tengda Construction vs. Gansu Jiu Steel |
| Ming Yang vs. Hunan TV Broadcast | Ming Yang vs. Shanghai Broadband Technology | Ming Yang vs. Hubei Yingtong Telecommunication | Ming Yang vs. Xinjiang Beixin RoadBridge |
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 Positions Ratings module to 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.
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