Correlation Between Wuhan Xianglong and Ming Yang
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By analyzing existing cross correlation between Wuhan Xianglong Power and Ming Yang Smart, you can compare the effects of market volatilities on Wuhan Xianglong 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 Wuhan Xianglong with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Xianglong and Ming Yang.
Diversification Opportunities for Wuhan Xianglong and Ming Yang
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wuhan and Ming is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Xianglong Power 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 Wuhan Xianglong 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 Wuhan Xianglong Power 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 Wuhan Xianglong i.e., Wuhan Xianglong and Ming Yang go up and down completely randomly.
Pair Corralation between Wuhan Xianglong and Ming Yang
Assuming the 90 days trading horizon Wuhan Xianglong Power is expected to generate 1.36 times more return on investment than Ming Yang. However, Wuhan Xianglong is 1.36 times more volatile than Ming Yang Smart. It trades about 0.09 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 762.00 in Wuhan Xianglong Power on August 25, 2024 and sell it today you would earn a total of 513.00 from holding Wuhan Xianglong Power or generate 67.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Xianglong Power vs. Ming Yang Smart
Performance |
| Timeline |
| Wuhan Xianglong Power |
| Ming Yang Smart |
Wuhan Xianglong and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Xianglong and Ming Yang
The main advantage of trading using opposite Wuhan Xianglong and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Xianglong 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.| Wuhan Xianglong vs. Ming Yang Smart | Wuhan Xianglong vs. 159681 | Wuhan Xianglong vs. 159005 | Wuhan Xianglong vs. Loctek Ergonomic Technology |
| Ming Yang vs. Fujian Rongji Software | Ming Yang vs. Masterwork Machinery | Ming Yang vs. Allied Machinery Co | Ming Yang vs. Anhui Huilong Agricultural |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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