Correlation Between Ming Yang and Fujian Longzhou
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By analyzing existing cross correlation between Ming Yang Smart and Fujian Longzhou Transportation, you can compare the effects of market volatilities on Ming Yang and Fujian Longzhou 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 Fujian Longzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Fujian Longzhou.
Diversification Opportunities for Ming Yang and Fujian Longzhou
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ming and Fujian is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Fujian Longzhou Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Longzhou Tran 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 Fujian Longzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Longzhou Tran has no effect on the direction of Ming Yang i.e., Ming Yang and Fujian Longzhou go up and down completely randomly.
Pair Corralation between Ming Yang and Fujian Longzhou
Assuming the 90 days trading horizon Ming Yang is expected to generate 1.71 times less return on investment than Fujian Longzhou. But when comparing it to its historical volatility, Ming Yang Smart is 1.52 times less risky than Fujian Longzhou. It trades about 0.01 of its potential returns per unit of risk. Fujian Longzhou Transportation is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 629.00 in Fujian Longzhou Transportation on September 14, 2024 and sell it today you would lose (42.00) from holding Fujian Longzhou Transportation or give up 6.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. Fujian Longzhou Transportation
Performance |
| Timeline |
| Ming Yang Smart |
| Fujian Longzhou Tran |
Ming Yang and Fujian Longzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Fujian Longzhou
The main advantage of trading using opposite Ming Yang and Fujian Longzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Fujian Longzhou 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 Fujian Longzhou will offset losses from the drop in Fujian Longzhou's long position.| Ming Yang vs. Xilinmen Furniture Co | Ming Yang vs. Jiangxi Hengda Hi Tech | Ming Yang vs. Wintao Communications Co | Ming Yang vs. Zhangjiagang Freetrade Science |
| Fujian Longzhou vs. New China Life | Fujian Longzhou vs. Ming Yang Smart | Fujian Longzhou vs. 159681 | Fujian Longzhou vs. 159005 |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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