Correlation Between Ming Yang and Hengerda New
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By analyzing existing cross correlation between Ming Yang Smart and Hengerda New Materials, you can compare the effects of market volatilities on Ming Yang and Hengerda New 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 Hengerda New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Hengerda New.
Diversification Opportunities for Ming Yang and Hengerda New
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ming and Hengerda is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Hengerda New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengerda New Materials 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 Hengerda New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengerda New Materials has no effect on the direction of Ming Yang i.e., Ming Yang and Hengerda New go up and down completely randomly.
Pair Corralation between Ming Yang and Hengerda New
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the Hengerda New. But the stock apears to be less risky and, when comparing its historical volatility, Ming Yang Smart is 1.35 times less risky than Hengerda New. The stock trades about -0.07 of its potential returns per unit of risk. The Hengerda New Materials is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,079 in Hengerda New Materials on October 22, 2024 and sell it today you would lose (444.00) from holding Hengerda New Materials or give up 14.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Ming Yang Smart vs. Hengerda New Materials
Performance |
| Timeline |
| Ming Yang Smart |
| Hengerda New Materials |
Ming Yang and Hengerda New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Hengerda New
The main advantage of trading using opposite Ming Yang and Hengerda New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Hengerda New 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 Hengerda New will offset losses from the drop in Hengerda New's long position.| Ming Yang vs. Anhui Gujing Distillery | Ming Yang vs. Harbin Hatou Investment | Ming Yang vs. Shandong Rike Chemical | Ming Yang vs. Citic Guoan Wine |
| Hengerda New vs. Sinomach Automobile Co | Hengerda New vs. Beijing Bewinner Communications | Hengerda New vs. TongFu Microelectronics Co | Hengerda New vs. Guangdong Ellington Electronics |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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