Correlation Between Ming Yang and Zhengping RoadBridge
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By analyzing existing cross correlation between Ming Yang Smart and Zhengping RoadBridge Constr, you can compare the effects of market volatilities on Ming Yang and Zhengping RoadBridge 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 Zhengping RoadBridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Zhengping RoadBridge.
Diversification Opportunities for Ming Yang and Zhengping RoadBridge
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ming and Zhengping is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Zhengping RoadBridge Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengping RoadBridge 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 Zhengping RoadBridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengping RoadBridge has no effect on the direction of Ming Yang i.e., Ming Yang and Zhengping RoadBridge go up and down completely randomly.
Pair Corralation between Ming Yang and Zhengping RoadBridge
Assuming the 90 days trading horizon Ming Yang is expected to generate 2.75 times less return on investment than Zhengping RoadBridge. But when comparing it to its historical volatility, Ming Yang Smart is 1.58 times less risky than Zhengping RoadBridge. It trades about 0.01 of its potential returns per unit of risk. Zhengping RoadBridge Constr is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 387.00 in Zhengping RoadBridge Constr on September 14, 2024 and sell it today you would earn a total of 2.00 from holding Zhengping RoadBridge Constr or generate 0.52% 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. Zhengping RoadBridge Constr
Performance |
| Timeline |
| Ming Yang Smart |
| Zhengping RoadBridge |
Ming Yang and Zhengping RoadBridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Zhengping RoadBridge
The main advantage of trading using opposite Ming Yang and Zhengping RoadBridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Zhengping RoadBridge 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 Zhengping RoadBridge will offset losses from the drop in Zhengping RoadBridge's long position.| Ming Yang vs. Xilinmen Furniture Co | Ming Yang vs. Jiangxi Hengda Hi Tech | Ming Yang vs. Wintao Communications Co | Ming Yang vs. Zhangjiagang Freetrade Science |
| Zhengping RoadBridge vs. Ming Yang Smart | Zhengping RoadBridge vs. 159681 | Zhengping RoadBridge vs. 159005 | Zhengping RoadBridge 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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