Correlation Between Ming Yang and China Longyuan
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By analyzing existing cross correlation between Ming Yang Smart and China Longyuan Power, you can compare the effects of market volatilities on Ming Yang and China Longyuan 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 China Longyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and China Longyuan.
Diversification Opportunities for Ming Yang and China Longyuan
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ming and China is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and China Longyuan Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Longyuan Power 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 China Longyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Longyuan Power has no effect on the direction of Ming Yang i.e., Ming Yang and China Longyuan go up and down completely randomly.
Pair Corralation between Ming Yang and China Longyuan
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the China Longyuan. In addition to that, Ming Yang is 1.27 times more volatile than China Longyuan Power. It trades about -0.04 of its total potential returns per unit of risk. China Longyuan Power is currently generating about 0.01 per unit of volatility. If you would invest 1,792 in China Longyuan Power on September 20, 2024 and sell it today you would lose (45.00) from holding China Longyuan Power or give up 2.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. China Longyuan Power
Performance |
| Timeline |
| Ming Yang Smart |
| China Longyuan Power |
Ming Yang and China Longyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and China Longyuan
The main advantage of trading using opposite Ming Yang and China Longyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, China Longyuan 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 China Longyuan will offset losses from the drop in China Longyuan's long position.| Ming Yang vs. Fujian Rongji Software | Ming Yang vs. Dhc Software Co | Ming Yang vs. Vohringer Home Technology | Ming Yang vs. Zoy Home Furnishing |
| China Longyuan vs. Ming Yang Smart | China Longyuan vs. 159681 | China Longyuan vs. 159005 | China Longyuan 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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