Correlation Between Ming Yang and Guangdong Wens
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By analyzing existing cross correlation between Ming Yang Smart and Guangdong Wens Foodstuff, you can compare the effects of market volatilities on Ming Yang and Guangdong Wens 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 Wens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Guangdong Wens.
Diversification Opportunities for Ming Yang and Guangdong Wens
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ming and Guangdong is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Guangdong Wens Foodstuff in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Wens Foodstuff 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 Wens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Wens Foodstuff has no effect on the direction of Ming Yang i.e., Ming Yang and Guangdong Wens go up and down completely randomly.
Pair Corralation between Ming Yang and Guangdong Wens
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the Guangdong Wens. In addition to that, Ming Yang is 2.4 times more volatile than Guangdong Wens Foodstuff. It trades about -0.58 of its total potential returns per unit of risk. Guangdong Wens Foodstuff is currently generating about -0.47 per unit of volatility. If you would invest 1,717 in Guangdong Wens Foodstuff on October 15, 2024 and sell it today you would lose (148.00) from holding Guangdong Wens Foodstuff or give up 8.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. Guangdong Wens Foodstuff
Performance |
| Timeline |
| Ming Yang Smart |
| Guangdong Wens Foodstuff |
Ming Yang and Guangdong Wens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Guangdong Wens
The main advantage of trading using opposite Ming Yang and Guangdong Wens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Guangdong Wens 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 Wens will offset losses from the drop in Guangdong Wens' long position.| Ming Yang vs. State Grid InformationCommunication | Ming Yang vs. Digital China Information | Ming Yang vs. Dawning Information Industry | Ming Yang vs. Ingenic Semiconductor |
| Guangdong Wens vs. Muyuan Foodstuff Co | Guangdong Wens vs. Shanghai Ziyan Foods | Guangdong Wens vs. Xiangyu Medical Co | Guangdong Wens vs. Winner Medical Co |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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