Correlation Between Ming Yang and Chahua Modern
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By analyzing existing cross correlation between Ming Yang Smart and Chahua Modern Housewares, you can compare the effects of market volatilities on Ming Yang and Chahua Modern 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 Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Chahua Modern.
Diversification Opportunities for Ming Yang and Chahua Modern
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ming and Chahua is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares 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 Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of Ming Yang i.e., Ming Yang and Chahua Modern go up and down completely randomly.
Pair Corralation between Ming Yang and Chahua Modern
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the Chahua Modern. But the stock apears to be less risky and, when comparing its historical volatility, Ming Yang Smart is 1.48 times less risky than Chahua Modern. The stock trades about -0.01 of its potential returns per unit of risk. The Chahua Modern Housewares is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 851.00 in Chahua Modern Housewares on September 2, 2024 and sell it today you would earn a total of 1,336 from holding Chahua Modern Housewares or generate 156.99% 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. Chahua Modern Housewares
Performance |
| Timeline |
| Ming Yang Smart |
| Chahua Modern Housewares |
Ming Yang and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Chahua Modern
The main advantage of trading using opposite Ming Yang and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Chahua Modern 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 Chahua Modern will offset losses from the drop in Chahua Modern's long position.| Ming Yang vs. Jonjee Hi tech Industrial | Ming Yang vs. Central Plains Environment | Ming Yang vs. Shenzhen MYS Environmental | Ming Yang vs. Sichuan Yahua Industrial |
| Chahua Modern vs. Guangzhou Ruoyuchen Information | Chahua Modern vs. Guangzhou Jointas Chemical | Chahua Modern vs. Lianhe Chemical Technology | Chahua Modern vs. Dawning Information Industry |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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