Correlation Between Ming Yang and Zhejiang Huatong
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By analyzing existing cross correlation between Ming Yang Smart and Zhejiang Huatong Meat, you can compare the effects of market volatilities on Ming Yang and Zhejiang Huatong 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 Zhejiang Huatong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Zhejiang Huatong.
Diversification Opportunities for Ming Yang and Zhejiang Huatong
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ming and Zhejiang is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Zhejiang Huatong Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Huatong Meat 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 Zhejiang Huatong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Huatong Meat has no effect on the direction of Ming Yang i.e., Ming Yang and Zhejiang Huatong go up and down completely randomly.
Pair Corralation between Ming Yang and Zhejiang Huatong
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the Zhejiang Huatong. But the stock apears to be less risky and, when comparing its historical volatility, Ming Yang Smart is 1.11 times less risky than Zhejiang Huatong. The stock trades about -0.02 of its potential returns per unit of risk. The Zhejiang Huatong Meat is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,657 in Zhejiang Huatong Meat on September 25, 2024 and sell it today you would lose (372.00) from holding Zhejiang Huatong Meat or give up 22.45% 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. Zhejiang Huatong Meat
Performance |
| Timeline |
| Ming Yang Smart |
| Zhejiang Huatong Meat |
Ming Yang and Zhejiang Huatong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Zhejiang Huatong
The main advantage of trading using opposite Ming Yang and Zhejiang Huatong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Zhejiang Huatong 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 Zhejiang Huatong will offset losses from the drop in Zhejiang Huatong's long position.| Ming Yang vs. Dazhong Transportation Group | Ming Yang vs. Jiangsu Jinling Sports | Ming Yang vs. Lander Sports Development | Ming Yang vs. Sunny Loan Top |
| Zhejiang Huatong vs. Chongqing Shunbo Aluminum | Zhejiang Huatong vs. China Aluminum International | Zhejiang Huatong vs. Sportsoul Co Ltd | Zhejiang Huatong vs. Sino Platinum Metals Co |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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