Correlation Between Ming Yang and Hunan TV
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By analyzing existing cross correlation between Ming Yang Smart and Hunan TV Broadcast, you can compare the effects of market volatilities on Ming Yang and Hunan TV 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 Hunan TV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Hunan TV.
Diversification Opportunities for Ming Yang and Hunan TV
Very poor diversification
The 3 months correlation between Ming and Hunan is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Hunan TV Broadcast in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan TV Broadcast 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 Hunan TV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan TV Broadcast has no effect on the direction of Ming Yang i.e., Ming Yang and Hunan TV go up and down completely randomly.
Pair Corralation between Ming Yang and Hunan TV
Assuming the 90 days trading horizon Ming Yang Smart is expected to generate 0.9 times more return on investment than Hunan TV. However, Ming Yang Smart is 1.11 times less risky than Hunan TV. It trades about 0.25 of its potential returns per unit of risk. Hunan TV Broadcast is currently generating about -0.24 per unit of risk. If you would invest 1,217 in Ming Yang Smart on September 3, 2024 and sell it today you would earn a total of 203.00 from holding Ming Yang Smart or generate 16.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. Hunan TV Broadcast
Performance |
| Timeline |
| Ming Yang Smart |
| Hunan TV Broadcast |
Ming Yang and Hunan TV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Hunan TV
The main advantage of trading using opposite Ming Yang and Hunan TV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Hunan TV 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 Hunan TV will offset losses from the drop in Hunan TV's long position.| Ming Yang vs. Shenzhen Kexin Communication | Ming Yang vs. Wintao Communications Co | Ming Yang vs. China Sports Industry | Ming Yang vs. State Grid InformationCommunication |
| Hunan TV vs. Maccura Biotechnology Co | Hunan TV vs. Shanghai Rendu Biotechnology | Hunan TV vs. Jinhe Biotechnology Co | Hunan TV vs. Wuhan Hvsen Biotechnology |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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