Correlation Between Ming Yang and Gan Yuan
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By analyzing existing cross correlation between Ming Yang Smart and Gan Yuan Foods, you can compare the effects of market volatilities on Ming Yang and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Gan Yuan.
Diversification Opportunities for Ming Yang and Gan Yuan
Very poor diversification
The 3 months correlation between Ming and Gan is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Ming Yang i.e., Ming Yang and Gan Yuan go up and down completely randomly.
Pair Corralation between Ming Yang and Gan Yuan
Assuming the 90 days trading horizon Ming Yang is expected to generate 1.37 times less return on investment than Gan Yuan. In addition to that, Ming Yang is 1.04 times more volatile than Gan Yuan Foods. It trades about 0.1 of its total potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.14 per unit of volatility. If you would invest 5,700 in Gan Yuan Foods on September 26, 2024 and sell it today you would earn a total of 3,185 from holding Gan Yuan Foods or generate 55.88% 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. Gan Yuan Foods
Performance |
| Timeline |
| Ming Yang Smart |
| Gan Yuan Foods |
Ming Yang and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Gan Yuan
The main advantage of trading using opposite Ming Yang and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's long position.| Ming Yang vs. Healthcare Co | Ming Yang vs. Sanbo Hospital Management | Ming Yang vs. Everjoy Health Group | Ming Yang vs. Huaxia Eye Hospital |
| Gan Yuan vs. Fujian Longzhou Transportation | Gan Yuan vs. Hunan TV Broadcast | Gan Yuan vs. Anhui Transport Consulting | Gan Yuan vs. Shanghai Broadband 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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