Correlation Between Ming Yang and Zotye Automobile
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By analyzing existing cross correlation between Ming Yang Smart and Zotye Automobile Co, you can compare the effects of market volatilities on Ming Yang and Zotye Automobile 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 Zotye Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Zotye Automobile.
Diversification Opportunities for Ming Yang and Zotye Automobile
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ming and Zotye is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Zotye Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zotye Automobile 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 Zotye Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zotye Automobile has no effect on the direction of Ming Yang i.e., Ming Yang and Zotye Automobile go up and down completely randomly.
Pair Corralation between Ming Yang and Zotye Automobile
Assuming the 90 days trading horizon Ming Yang is expected to generate 8.01 times less return on investment than Zotye Automobile. But when comparing it to its historical volatility, Ming Yang Smart is 1.67 times less risky than Zotye Automobile. It trades about 0.02 of its potential returns per unit of risk. Zotye Automobile Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 183.00 in Zotye Automobile Co on October 14, 2024 and sell it today you would earn a total of 33.00 from holding Zotye Automobile Co or generate 18.03% 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. Zotye Automobile Co
Performance |
| Timeline |
| Ming Yang Smart |
| Zotye Automobile |
Ming Yang and Zotye Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Zotye Automobile
The main advantage of trading using opposite Ming Yang and Zotye Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Zotye Automobile 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 Zotye Automobile will offset losses from the drop in Zotye Automobile's long position.| Ming Yang vs. State Grid InformationCommunication | Ming Yang vs. Digital China Information | Ming Yang vs. Dawning Information Industry | Ming Yang vs. Ingenic Semiconductor |
| Zotye Automobile vs. Road Environment Technology | Zotye Automobile vs. Hainan Haiqi Transportation | Zotye Automobile vs. Anhui Transport Consulting | Zotye Automobile vs. Fujian Longzhou Transportation |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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