Correlation Between Ming Yang and Hangzhou Weiguang
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By analyzing existing cross correlation between Ming Yang Smart and Hangzhou Weiguang Electronic, you can compare the effects of market volatilities on Ming Yang and Hangzhou Weiguang 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 Hangzhou Weiguang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Hangzhou Weiguang.
Diversification Opportunities for Ming Yang and Hangzhou Weiguang
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ming and Hangzhou is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Hangzhou Weiguang Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Weiguang 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 Hangzhou Weiguang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Weiguang has no effect on the direction of Ming Yang i.e., Ming Yang and Hangzhou Weiguang go up and down completely randomly.
Pair Corralation between Ming Yang and Hangzhou Weiguang
Assuming the 90 days trading horizon Ming Yang Smart is expected to generate 1.19 times more return on investment than Hangzhou Weiguang. However, Ming Yang is 1.19 times more volatile than Hangzhou Weiguang Electronic. It trades about 0.28 of its potential returns per unit of risk. Hangzhou Weiguang Electronic is currently generating about 0.23 per unit of risk. If you would invest 1,217 in Ming Yang Smart on September 5, 2024 and sell it today you would earn a total of 251.00 from holding Ming Yang Smart or generate 20.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. Hangzhou Weiguang Electronic
Performance |
| Timeline |
| Ming Yang Smart |
| Hangzhou Weiguang |
Ming Yang and Hangzhou Weiguang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Hangzhou Weiguang
The main advantage of trading using opposite Ming Yang and Hangzhou Weiguang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Hangzhou Weiguang 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 Hangzhou Weiguang will offset losses from the drop in Hangzhou Weiguang's long position.| Ming Yang vs. Kingsignal Technology Co | Ming Yang vs. Shandong Mining Machinery | Ming Yang vs. Jiangxi Selon Industrial | Ming Yang vs. Hainan Mining Co |
| Hangzhou Weiguang vs. New China Life | Hangzhou Weiguang vs. Ming Yang Smart | Hangzhou Weiguang vs. 159681 | Hangzhou Weiguang 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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