Correlation Between Ming Yang and Guangdong Liantai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ming Yang Smart and Guangdong Liantai Environmental, you can compare the effects of market volatilities on Ming Yang and Guangdong Liantai 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 Guangdong Liantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Guangdong Liantai.
Diversification Opportunities for Ming Yang and Guangdong Liantai
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ming and Guangdong is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Guangdong Liantai Environmenta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Liantai 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 Guangdong Liantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Liantai has no effect on the direction of Ming Yang i.e., Ming Yang and Guangdong Liantai go up and down completely randomly.
Pair Corralation between Ming Yang and Guangdong Liantai
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the Guangdong Liantai. In addition to that, Ming Yang is 1.18 times more volatile than Guangdong Liantai Environmental. It trades about -0.07 of its total potential returns per unit of risk. Guangdong Liantai Environmental is currently generating about -0.03 per unit of volatility. If you would invest 576.00 in Guangdong Liantai Environmental on October 15, 2024 and sell it today you would lose (202.00) from holding Guangdong Liantai Environmental or give up 35.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. Guangdong Liantai Environmenta
Performance |
| Timeline |
| Ming Yang Smart |
| Guangdong Liantai |
Ming Yang and Guangdong Liantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Guangdong Liantai
The main advantage of trading using opposite Ming Yang and Guangdong Liantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Guangdong Liantai 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 Guangdong Liantai will offset losses from the drop in Guangdong Liantai's long position.| Ming Yang vs. Ye Chiu Metal | Ming Yang vs. Aluminum Corp of | Ming Yang vs. ZYF Lopsking Aluminum | Ming Yang vs. Lecron Energy Saving |
| Guangdong Liantai vs. Western Metal Materials | Guangdong Liantai vs. Cultural Investment Holdings | Guangdong Liantai vs. Xinjiang Baodi Mining | Guangdong Liantai vs. Beijing Shunxin Agriculture |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |