Correlation Between Ming Yang and Weichai Heavy
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By analyzing existing cross correlation between Ming Yang Smart and Weichai Heavy Machinery, you can compare the effects of market volatilities on Ming Yang and Weichai Heavy 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 Weichai Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Weichai Heavy.
Diversification Opportunities for Ming Yang and Weichai Heavy
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ming and Weichai is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Weichai Heavy Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weichai Heavy Machinery 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 Weichai Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weichai Heavy Machinery has no effect on the direction of Ming Yang i.e., Ming Yang and Weichai Heavy go up and down completely randomly.
Pair Corralation between Ming Yang and Weichai Heavy
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the Weichai Heavy. But the stock apears to be less risky and, when comparing its historical volatility, Ming Yang Smart is 2.33 times less risky than Weichai Heavy. The stock trades about -0.36 of its potential returns per unit of risk. The Weichai Heavy Machinery is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,684 in Weichai Heavy Machinery on October 26, 2024 and sell it today you would earn a total of 462.00 from holding Weichai Heavy Machinery or generate 27.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. Weichai Heavy Machinery
Performance |
| Timeline |
| Ming Yang Smart |
| Weichai Heavy Machinery |
Ming Yang and Weichai Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Weichai Heavy
The main advantage of trading using opposite Ming Yang and Weichai Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Weichai Heavy 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 Weichai Heavy will offset losses from the drop in Weichai Heavy's long position.| Ming Yang vs. Zhonghang Electronic Measuring | Ming Yang vs. Sichuan Yahua Industrial | Ming Yang vs. Semiconductor Manufacturing Electronics | Ming Yang vs. Guangdong Ellington Electronics |
| Weichai Heavy vs. Ming Yang Smart | Weichai Heavy vs. 159681 | Weichai Heavy vs. 159005 | Weichai Heavy vs. Loctek Ergonomic Technology |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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