Correlation Between Ming Yang and Kangyue Technology
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By analyzing existing cross correlation between Ming Yang Smart and Kangyue Technology Co, you can compare the effects of market volatilities on Ming Yang and Kangyue Technology 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 Kangyue Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Kangyue Technology.
Diversification Opportunities for Ming Yang and Kangyue Technology
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ming and Kangyue is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Kangyue Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangyue Technology 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 Kangyue Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangyue Technology has no effect on the direction of Ming Yang i.e., Ming Yang and Kangyue Technology go up and down completely randomly.
Pair Corralation between Ming Yang and Kangyue Technology
Assuming the 90 days trading horizon Ming Yang is expected to generate 1.53 times less return on investment than Kangyue Technology. But when comparing it to its historical volatility, Ming Yang Smart is 2.23 times less risky than Kangyue Technology. It trades about 0.27 of its potential returns per unit of risk. Kangyue Technology Co is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 350.00 in Kangyue Technology Co on September 5, 2024 and sell it today you would earn a total of 337.00 from holding Kangyue Technology Co or generate 96.29% 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. Kangyue Technology Co
Performance |
| Timeline |
| Ming Yang Smart |
| Kangyue Technology |
Ming Yang and Kangyue Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Kangyue Technology
The main advantage of trading using opposite Ming Yang and Kangyue Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Kangyue Technology 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 Kangyue Technology will offset losses from the drop in Kangyue Technology's long position.| Ming Yang vs. Kingsignal Technology Co | Ming Yang vs. Shandong Mining Machinery | Ming Yang vs. Jiangxi Selon Industrial | Ming Yang vs. Hainan Mining Co |
| Kangyue Technology vs. Ming Yang Smart | Kangyue Technology vs. 159681 | Kangyue Technology vs. 159005 | Kangyue Technology 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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