Correlation Between Ming Yang and Huitong Construction
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By analyzing existing cross correlation between Ming Yang Smart and Huitong Construction Group, you can compare the effects of market volatilities on Ming Yang and Huitong 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 Huitong Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Huitong Construction.
Diversification Opportunities for Ming Yang and Huitong Construction
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ming and Huitong is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Huitong Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huitong 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 Huitong Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huitong Construction has no effect on the direction of Ming Yang i.e., Ming Yang and Huitong Construction go up and down completely randomly.
Pair Corralation between Ming Yang and Huitong Construction
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the Huitong Construction. But the stock apears to be less risky and, when comparing its historical volatility, Ming Yang Smart is 1.14 times less risky than Huitong Construction. The stock trades about -0.01 of its potential returns per unit of risk. The Huitong Construction Group is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 625.00 in Huitong Construction Group on August 25, 2024 and sell it today you would lose (97.00) from holding Huitong Construction Group or give up 15.52% 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. Huitong Construction Group
Performance |
| Timeline |
| Ming Yang Smart |
| Huitong Construction |
Ming Yang and Huitong Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Huitong Construction
The main advantage of trading using opposite Ming Yang and Huitong Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Huitong 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 Huitong Construction will offset losses from the drop in Huitong Construction's 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 |
| Huitong Construction vs. Ming Yang Smart | Huitong Construction vs. 159681 | Huitong Construction vs. 159005 | Huitong 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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