Correlation Between Ming Yang and Hunan Nanling
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By analyzing existing cross correlation between Ming Yang Smart and Hunan Nanling Industrial, you can compare the effects of market volatilities on Ming Yang and Hunan Nanling 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 Nanling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Hunan Nanling.
Diversification Opportunities for Ming Yang and Hunan Nanling
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ming and Hunan is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Hunan Nanling Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Nanling 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 Hunan Nanling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Nanling Industrial has no effect on the direction of Ming Yang i.e., Ming Yang and Hunan Nanling go up and down completely randomly.
Pair Corralation between Ming Yang and Hunan Nanling
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the Hunan Nanling. But the stock apears to be less risky and, when comparing its historical volatility, Ming Yang Smart is 1.05 times less risky than Hunan Nanling. The stock trades about -0.05 of its potential returns per unit of risk. The Hunan Nanling Industrial is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,181 in Hunan Nanling Industrial on August 24, 2024 and sell it today you would earn a total of 42.00 from holding Hunan Nanling Industrial or generate 3.56% 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 Nanling Industrial
Performance |
| Timeline |
| Ming Yang Smart |
| Hunan Nanling Industrial |
Ming Yang and Hunan Nanling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Hunan Nanling
The main advantage of trading using opposite Ming Yang and Hunan Nanling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Hunan Nanling 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 Nanling will offset losses from the drop in Hunan Nanling's long position.| Ming Yang vs. Hoshine Silicon Ind | Ming Yang vs. Miracll Chemicals Co | Ming Yang vs. Vontron Technology Co | Ming Yang vs. Lander Sports Development |
| Hunan Nanling vs. Holitech Technology Co | Hunan Nanling vs. Kuangda Technology Group | Hunan Nanling vs. Hubei Forbon Technology | Hunan Nanling vs. Olympic Circuit 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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