Correlation Between Ming Yang and Hengdian Entertainment
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By analyzing existing cross correlation between Ming Yang Smart and Hengdian Entertainment Co, you can compare the effects of market volatilities on Ming Yang and Hengdian Entertainment 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 Hengdian Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Hengdian Entertainment.
Diversification Opportunities for Ming Yang and Hengdian Entertainment
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ming and Hengdian is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Hengdian Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengdian Entertainment 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 Hengdian Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengdian Entertainment has no effect on the direction of Ming Yang i.e., Ming Yang and Hengdian Entertainment go up and down completely randomly.
Pair Corralation between Ming Yang and Hengdian Entertainment
Assuming the 90 days trading horizon Ming Yang Smart is expected to generate 0.35 times more return on investment than Hengdian Entertainment. However, Ming Yang Smart is 2.9 times less risky than Hengdian Entertainment. It trades about 0.24 of its potential returns per unit of risk. Hengdian Entertainment Co is currently generating about -0.01 per unit of risk. If you would invest 1,038 in Ming Yang Smart on November 28, 2024 and sell it today you would earn a total of 81.00 from holding Ming Yang Smart or generate 7.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Ming Yang Smart vs. Hengdian Entertainment Co
Performance |
| Timeline |
| Ming Yang Smart |
| Hengdian Entertainment |
Ming Yang and Hengdian Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Hengdian Entertainment
The main advantage of trading using opposite Ming Yang and Hengdian Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Hengdian Entertainment 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 Hengdian Entertainment will offset losses from the drop in Hengdian Entertainment's long position.| Ming Yang vs. Bloomage Biotechnology Corp | Ming Yang vs. Shenzhen Bioeasy Biotechnology | Ming Yang vs. Sichuan Hebang Biotechnology | Ming Yang vs. Nsfocus Information Technology |
| Hengdian Entertainment vs. Industrial and Commercial | Hengdian Entertainment vs. Agricultural Bank of | Hengdian Entertainment vs. China Construction Bank | Hengdian Entertainment vs. Bank of China |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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