Correlation Between Ming Yang and YLZ Information
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By analyzing existing cross correlation between Ming Yang Smart and YLZ Information Tech, you can compare the effects of market volatilities on Ming Yang and YLZ Information 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 YLZ Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and YLZ Information.
Diversification Opportunities for Ming Yang and YLZ Information
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ming and YLZ is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and YLZ Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YLZ Information Tech 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 YLZ Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YLZ Information Tech has no effect on the direction of Ming Yang i.e., Ming Yang and YLZ Information go up and down completely randomly.
Pair Corralation between Ming Yang and YLZ Information
Assuming the 90 days trading horizon Ming Yang is expected to generate 2.26 times less return on investment than YLZ Information. But when comparing it to its historical volatility, Ming Yang Smart is 1.33 times less risky than YLZ Information. It trades about 0.08 of its potential returns per unit of risk. YLZ Information Tech is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 336.00 in YLZ Information Tech on December 1, 2024 and sell it today you would earn a total of 22.00 from holding YLZ Information Tech or generate 6.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. YLZ Information Tech
Performance |
| Timeline |
| Ming Yang Smart |
| YLZ Information Tech |
Ming Yang and YLZ Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and YLZ Information
The main advantage of trading using opposite Ming Yang and YLZ Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, YLZ Information 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 YLZ Information will offset losses from the drop in YLZ Information's long position.| Ming Yang vs. Shenyang Blue Silver | Ming Yang vs. Guocheng Mining Co | Ming Yang vs. Shengda Mining Co | Ming Yang vs. Sinomach Automobile Co |
| YLZ Information vs. TVZone Media Co | YLZ Information vs. Chengdu B ray Media | YLZ Information vs. Ningbo Ligong Online | YLZ Information vs. Shenzhen Centralcon Investment |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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