Correlation Between Ming Yang and Shenzhen Longsys
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By analyzing existing cross correlation between Ming Yang Smart and Shenzhen Longsys Electronics, you can compare the effects of market volatilities on Ming Yang and Shenzhen Longsys 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 Shenzhen Longsys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Shenzhen Longsys.
Diversification Opportunities for Ming Yang and Shenzhen Longsys
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ming and Shenzhen is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Shenzhen Longsys Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Longsys Ele 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 Shenzhen Longsys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Longsys Ele has no effect on the direction of Ming Yang i.e., Ming Yang and Shenzhen Longsys go up and down completely randomly.
Pair Corralation between Ming Yang and Shenzhen Longsys
Assuming the 90 days trading horizon Ming Yang Smart is expected to generate 0.71 times more return on investment than Shenzhen Longsys. However, Ming Yang Smart is 1.41 times less risky than Shenzhen Longsys. It trades about 0.06 of its potential returns per unit of risk. Shenzhen Longsys Electronics is currently generating about 0.02 per unit of risk. If you would invest 1,042 in Ming Yang Smart on August 25, 2024 and sell it today you would earn a total of 173.00 from holding Ming Yang Smart or generate 16.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. Shenzhen Longsys Electronics
Performance |
| Timeline |
| Ming Yang Smart |
| Shenzhen Longsys Ele |
Ming Yang and Shenzhen Longsys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Shenzhen Longsys
The main advantage of trading using opposite Ming Yang and Shenzhen Longsys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Shenzhen Longsys 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 Shenzhen Longsys will offset losses from the drop in Shenzhen Longsys' long position.| Ming Yang vs. Fujian Rongji Software | Ming Yang vs. Masterwork Machinery | Ming Yang vs. Allied Machinery Co | Ming Yang vs. Anhui Huilong Agricultural |
| Shenzhen Longsys vs. Ming Yang Smart | Shenzhen Longsys vs. 159005 | Shenzhen Longsys vs. Loctek Ergonomic Technology | Shenzhen Longsys vs. Xiamen East Asia |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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