Correlation Between Luyin Investment and Ming Yang
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By analyzing existing cross correlation between Luyin Investment Group and Ming Yang Smart, you can compare the effects of market volatilities on Luyin Investment 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 Luyin Investment with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Ming Yang.
Diversification Opportunities for Luyin Investment and Ming Yang
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Luyin and Ming is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment 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 Luyin Investment 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 Luyin Investment 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 Luyin Investment i.e., Luyin Investment and Ming Yang go up and down completely randomly.
Pair Corralation between Luyin Investment and Ming Yang
Assuming the 90 days trading horizon Luyin Investment is expected to generate 1.71 times less return on investment than Ming Yang. But when comparing it to its historical volatility, Luyin Investment Group is 1.6 times less risky than Ming Yang. It trades about 0.15 of its potential returns per unit of risk. Ming Yang Smart is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,312 in Ming Yang Smart on September 14, 2024 and sell it today you would earn a total of 137.00 from holding Ming Yang Smart or generate 10.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luyin Investment Group vs. Ming Yang Smart
Performance |
| Timeline |
| Luyin Investment |
| Ming Yang Smart |
Luyin Investment and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Ming Yang
The main advantage of trading using opposite Luyin Investment and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment 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.| Luyin Investment vs. Zijin Mining Group | Luyin Investment vs. Wanhua Chemical Group | Luyin Investment vs. Baoshan Iron Steel | Luyin Investment vs. Shandong Gold Mining |
| Ming Yang vs. Xilinmen Furniture Co | Ming Yang vs. Jiangxi Hengda Hi Tech | Ming Yang vs. Wintao Communications Co | Ming Yang vs. Zhangjiagang Freetrade Science |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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