Correlation Between Ming Yang and Hengli Industrial
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By analyzing existing cross correlation between Ming Yang Smart and Hengli Industrial Development, you can compare the effects of market volatilities on Ming Yang and Hengli Industrial 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 Ming Yang with a short position of Hengli Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Hengli Industrial.
Diversification Opportunities for Ming Yang and Hengli Industrial
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ming and Hengli is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Hengli Industrial Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Industrial and Ming Yang 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 Ming Yang Smart are associated (or correlated) with Hengli Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Industrial has no effect on the direction of Ming Yang i.e., Ming Yang and Hengli Industrial go up and down completely randomly.
Pair Corralation between Ming Yang and Hengli Industrial
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the Hengli Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Ming Yang Smart is 1.38 times less risky than Hengli Industrial. The stock trades about -0.07 of its potential returns per unit of risk. The Hengli Industrial Development is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 465.00 in Hengli Industrial Development on October 25, 2024 and sell it today you would lose (224.00) from holding Hengli Industrial Development or give up 48.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. Hengli Industrial Development
Performance |
| Timeline |
| Ming Yang Smart |
| Hengli Industrial |
Ming Yang and Hengli Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Hengli Industrial
The main advantage of trading using opposite Ming Yang and Hengli Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Hengli Industrial 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 Hengli Industrial will offset losses from the drop in Hengli Industrial's long position.| Ming Yang vs. Shanghai Broadband Technology | Ming Yang vs. Quectel Wireless Solutions | Ming Yang vs. Shaanxi Broadcast TV | Ming Yang vs. Sichuan Fulin Transportation |
| Hengli Industrial vs. PetroChina Co Ltd | Hengli Industrial vs. Gansu Jiu Steel | Hengli Industrial vs. Ming Yang Smart | Hengli Industrial vs. Aba Chemicals Corp |
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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