Correlation Between Changchun Faway and Ming Yang
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By analyzing existing cross correlation between Changchun Faway Automobile and Ming Yang Smart, you can compare the effects of market volatilities on Changchun Faway 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 Changchun Faway with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun Faway and Ming Yang.
Diversification Opportunities for Changchun Faway and Ming Yang
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Changchun and Ming is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Changchun Faway Automobile 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 Changchun Faway 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 Changchun Faway Automobile 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 Changchun Faway i.e., Changchun Faway and Ming Yang go up and down completely randomly.
Pair Corralation between Changchun Faway and Ming Yang
Assuming the 90 days trading horizon Changchun Faway Automobile is expected to generate 0.9 times more return on investment than Ming Yang. However, Changchun Faway Automobile is 1.12 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 -0.05 per unit of risk. If you would invest 887.00 in Changchun Faway Automobile on August 28, 2024 and sell it today you would earn a total of 81.00 from holding Changchun Faway Automobile or generate 9.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun Faway Automobile vs. Ming Yang Smart
Performance |
| Timeline |
| Changchun Faway Auto |
| Ming Yang Smart |
Changchun Faway and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun Faway and Ming Yang
The main advantage of trading using opposite Changchun Faway and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun Faway 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.| Changchun Faway vs. Chinese Universe Publishing | Changchun Faway vs. Ningbo Jianan Electronics | Changchun Faway vs. Epoxy Base Electronic | Changchun Faway vs. Changjiang Publishing Media |
| Ming Yang vs. Hubei Xingfa Chemicals | Ming Yang vs. JCHX Mining Management | Ming Yang vs. Nexchip Semiconductor Corp | Ming Yang vs. Uroica Mining Safety |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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