Correlation Between Ming Yang and Allied Machinery
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By analyzing existing cross correlation between Ming Yang Smart and Allied Machinery Co, you can compare the effects of market volatilities on Ming Yang and Allied Machinery 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 Allied Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Allied Machinery.
Diversification Opportunities for Ming Yang and Allied Machinery
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ming and Allied is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Allied Machinery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allied Machinery 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 Allied Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allied Machinery has no effect on the direction of Ming Yang i.e., Ming Yang and Allied Machinery go up and down completely randomly.
Pair Corralation between Ming Yang and Allied Machinery
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the Allied Machinery. But the stock apears to be less risky and, when comparing its historical volatility, Ming Yang Smart is 1.03 times less risky than Allied Machinery. The stock trades about -0.04 of its potential returns per unit of risk. The Allied Machinery Co is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 2,565 in Allied Machinery Co on September 3, 2024 and sell it today you would lose (932.00) from holding Allied Machinery Co or give up 36.34% 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. Allied Machinery Co
Performance |
| Timeline |
| Ming Yang Smart |
| Allied Machinery |
Ming Yang and Allied Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Allied Machinery
The main advantage of trading using opposite Ming Yang and Allied Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Allied Machinery 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 Allied Machinery will offset losses from the drop in Allied Machinery's long position.| Ming Yang vs. Shenzhen Kexin Communication | Ming Yang vs. Wintao Communications Co | Ming Yang vs. China Sports Industry | Ming Yang vs. State Grid InformationCommunication |
| Allied Machinery vs. Cultural Investment Holdings | Allied Machinery vs. Gome Telecom Equipment | Allied Machinery vs. Bus Online Co | Allied Machinery vs. Holitech Technology Co |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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