Correlation Between Ming Yang and Beijing HuaYuanYiTong
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By analyzing existing cross correlation between Ming Yang Smart and Beijing HuaYuanYiTong Thermal, you can compare the effects of market volatilities on Ming Yang and Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Beijing HuaYuanYiTong.
Diversification Opportunities for Ming Yang and Beijing HuaYuanYiTong
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ming and Beijing is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Beijing HuaYuanYiTong Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing HuaYuanYiTong has no effect on the direction of Ming Yang i.e., Ming Yang and Beijing HuaYuanYiTong go up and down completely randomly.
Pair Corralation between Ming Yang and Beijing HuaYuanYiTong
Assuming the 90 days trading horizon Ming Yang Smart is expected to generate 1.02 times more return on investment than Beijing HuaYuanYiTong. However, Ming Yang is 1.02 times more volatile than Beijing HuaYuanYiTong Thermal. It trades about 0.12 of its potential returns per unit of risk. Beijing HuaYuanYiTong Thermal is currently generating about 0.09 per unit of risk. If you would invest 1,326 in Ming Yang Smart on September 13, 2024 and sell it today you would earn a total of 96.00 from holding Ming Yang Smart or generate 7.24% 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. Beijing HuaYuanYiTong Thermal
Performance |
| Timeline |
| Ming Yang Smart |
| Beijing HuaYuanYiTong |
Ming Yang and Beijing HuaYuanYiTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Beijing HuaYuanYiTong
The main advantage of trading using opposite Ming Yang and Beijing HuaYuanYiTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong will offset losses from the drop in Beijing HuaYuanYiTong's long position.| Ming Yang vs. Shenyang Huitian Thermal | Ming Yang vs. Beijing HuaYuanYiTong Thermal | Ming Yang vs. Zhejiang Yayi Metal | Ming Yang vs. Luyin Investment Group |
| Beijing HuaYuanYiTong vs. Ming Yang Smart | Beijing HuaYuanYiTong vs. 159681 | Beijing HuaYuanYiTong vs. 159005 | Beijing HuaYuanYiTong 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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