Correlation Between Ming Yang and Guangdong Tianhe
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By analyzing existing cross correlation between Ming Yang Smart and Guangdong Tianhe Agricultural, you can compare the effects of market volatilities on Ming Yang and Guangdong Tianhe 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 Guangdong Tianhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Guangdong Tianhe.
Diversification Opportunities for Ming Yang and Guangdong Tianhe
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ming and Guangdong is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Guangdong Tianhe Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Tianhe Agr 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 Guangdong Tianhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Tianhe Agr has no effect on the direction of Ming Yang i.e., Ming Yang and Guangdong Tianhe go up and down completely randomly.
Pair Corralation between Ming Yang and Guangdong Tianhe
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the Guangdong Tianhe. But the stock apears to be less risky and, when comparing its historical volatility, Ming Yang Smart is 1.27 times less risky than Guangdong Tianhe. The stock trades about -0.63 of its potential returns per unit of risk. The Guangdong Tianhe Agricultural is currently generating about -0.34 of returns per unit of risk over similar time horizon. If you would invest 705.00 in Guangdong Tianhe Agricultural on October 14, 2024 and sell it today you would lose (140.00) from holding Guangdong Tianhe Agricultural or give up 19.86% 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. Guangdong Tianhe Agricultural
Performance |
| Timeline |
| Ming Yang Smart |
| Guangdong Tianhe Agr |
Ming Yang and Guangdong Tianhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Guangdong Tianhe
The main advantage of trading using opposite Ming Yang and Guangdong Tianhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Guangdong Tianhe 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 Guangdong Tianhe will offset losses from the drop in Guangdong Tianhe's long position.| Ming Yang vs. State Grid InformationCommunication | Ming Yang vs. Shenzhen Glory Medical | Ming Yang vs. Guangdong Transtek Medical | Ming Yang vs. Xiangyu Medical Co |
| Guangdong Tianhe vs. Epoxy Base Electronic | Guangdong Tianhe vs. Eit Environmental Development | Guangdong Tianhe vs. Fujian Nanwang Environment | Guangdong Tianhe vs. Tongxing Environmental Protection |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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