Correlation Between Ming Yang and Guangzhou Restaurants
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By analyzing existing cross correlation between Ming Yang Smart and Guangzhou Restaurants Group, you can compare the effects of market volatilities on Ming Yang and Guangzhou Restaurants 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 Guangzhou Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Guangzhou Restaurants.
Diversification Opportunities for Ming Yang and Guangzhou Restaurants
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ming and Guangzhou is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Guangzhou Restaurants Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Restaurants 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 Guangzhou Restaurants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Restaurants has no effect on the direction of Ming Yang i.e., Ming Yang and Guangzhou Restaurants go up and down completely randomly.
Pair Corralation between Ming Yang and Guangzhou Restaurants
Assuming the 90 days trading horizon Ming Yang Smart is expected to generate 1.31 times more return on investment than Guangzhou Restaurants. However, Ming Yang is 1.31 times more volatile than Guangzhou Restaurants Group. It trades about 0.08 of its potential returns per unit of risk. Guangzhou Restaurants Group is currently generating about 0.01 per unit of risk. If you would invest 1,097 in Ming Yang Smart on September 12, 2024 and sell it today you would earn a total of 309.00 from holding Ming Yang Smart or generate 28.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. Guangzhou Restaurants Group
Performance |
| Timeline |
| Ming Yang Smart |
| Guangzhou Restaurants |
Ming Yang and Guangzhou Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Guangzhou Restaurants
The main advantage of trading using opposite Ming Yang and Guangzhou Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Guangzhou Restaurants 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 Guangzhou Restaurants will offset losses from the drop in Guangzhou Restaurants' long position.| Ming Yang vs. Jiangyin Jianghua Microelectronics | Ming Yang vs. HaiXin Foods Co | Ming Yang vs. Fujian Anjoy Foods | Ming Yang vs. Success Electronics |
| Guangzhou Restaurants vs. Lutian Machinery Co | Guangzhou Restaurants vs. PetroChina Co Ltd | Guangzhou Restaurants vs. Bank of China | Guangzhou Restaurants vs. Gansu Jiu Steel |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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