Correlation Between Ming Yang and Tengda Construction
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By analyzing existing cross correlation between Ming Yang Smart and Tengda Construction Group, you can compare the effects of market volatilities on Ming Yang and Tengda Construction 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 Tengda Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Tengda Construction.
Diversification Opportunities for Ming Yang and Tengda Construction
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ming and Tengda is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Tengda Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tengda Construction 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 Tengda Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tengda Construction has no effect on the direction of Ming Yang i.e., Ming Yang and Tengda Construction go up and down completely randomly.
Pair Corralation between Ming Yang and Tengda Construction
Assuming the 90 days trading horizon Ming Yang Smart is expected to generate 1.21 times more return on investment than Tengda Construction. However, Ming Yang is 1.21 times more volatile than Tengda Construction Group. It trades about 0.05 of its potential returns per unit of risk. Tengda Construction Group is currently generating about 0.02 per unit of risk. If you would invest 1,252 in Ming Yang Smart on September 27, 2024 and sell it today you would earn a total of 30.00 from holding Ming Yang Smart or generate 2.4% 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. Tengda Construction Group
Performance |
| Timeline |
| Ming Yang Smart |
| Tengda Construction |
Ming Yang and Tengda Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Tengda Construction
The main advantage of trading using opposite Ming Yang and Tengda Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Tengda Construction 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 Tengda Construction will offset losses from the drop in Tengda Construction's long position.| Ming Yang vs. Healthcare Co | Ming Yang vs. Sanbo Hospital Management | Ming Yang vs. Everjoy Health Group | Ming Yang vs. Huaxia Eye Hospital |
| Tengda Construction vs. Ming Yang Smart | Tengda Construction vs. 159681 | Tengda Construction vs. 159005 | Tengda Construction 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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