Correlation Between Ming Yang and Changchun Engley
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By analyzing existing cross correlation between Ming Yang Smart and Changchun Engley Automobile, you can compare the effects of market volatilities on Ming Yang and Changchun Engley 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 Changchun Engley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Changchun Engley.
Diversification Opportunities for Ming Yang and Changchun Engley
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ming and Changchun is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Changchun Engley Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Engley Aut 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 Changchun Engley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Engley Aut has no effect on the direction of Ming Yang i.e., Ming Yang and Changchun Engley go up and down completely randomly.
Pair Corralation between Ming Yang and Changchun Engley
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the Changchun Engley. But the stock apears to be less risky and, when comparing its historical volatility, Ming Yang Smart is 1.13 times less risky than Changchun Engley. The stock trades about -0.36 of its potential returns per unit of risk. The Changchun Engley Automobile is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest 389.00 in Changchun Engley Automobile on October 25, 2024 and sell it today you would lose (35.00) from holding Changchun Engley Automobile or give up 9.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. Changchun Engley Automobile
Performance |
| Timeline |
| Ming Yang Smart |
| Changchun Engley Aut |
Ming Yang and Changchun Engley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Changchun Engley
The main advantage of trading using opposite Ming Yang and Changchun Engley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Changchun Engley 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 Changchun Engley will offset losses from the drop in Changchun Engley's long position.| Ming Yang vs. Shanghai Broadband Technology | Ming Yang vs. Quectel Wireless Solutions | Ming Yang vs. Shaanxi Broadcast TV | Ming Yang vs. Sichuan Fulin Transportation |
| Changchun Engley vs. PetroChina Co Ltd | Changchun Engley vs. Gansu Jiu Steel | Changchun Engley vs. Ming Yang Smart | Changchun Engley vs. Aba Chemicals Corp |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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