Correlation Between Ming Yang and Ningbo Tip
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By analyzing existing cross correlation between Ming Yang Smart and Ningbo Tip Rubber, you can compare the effects of market volatilities on Ming Yang and Ningbo Tip 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 Ningbo Tip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Ningbo Tip.
Diversification Opportunities for Ming Yang and Ningbo Tip
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ming and Ningbo is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Ningbo Tip Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Tip Rubber 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 Ningbo Tip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Tip Rubber has no effect on the direction of Ming Yang i.e., Ming Yang and Ningbo Tip go up and down completely randomly.
Pair Corralation between Ming Yang and Ningbo Tip
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the Ningbo Tip. But the stock apears to be less risky and, when comparing its historical volatility, Ming Yang Smart is 1.11 times less risky than Ningbo Tip. The stock trades about -0.21 of its potential returns per unit of risk. The Ningbo Tip Rubber is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,192 in Ningbo Tip Rubber on November 4, 2024 and sell it today you would earn a total of 114.00 from holding Ningbo Tip Rubber or generate 9.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. Ningbo Tip Rubber
Performance |
| Timeline |
| Ming Yang Smart |
| Ningbo Tip Rubber |
Ming Yang and Ningbo Tip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Ningbo Tip
The main advantage of trading using opposite Ming Yang and Ningbo Tip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Ningbo Tip 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 Ningbo Tip will offset losses from the drop in Ningbo Tip's long position.| Ming Yang vs. Guangzhou KDT Machinery | Ming Yang vs. Longjian Road Bridge | Ming Yang vs. Tjk Machinery Tianjin | Ming Yang vs. Shenzhen Zhongzhuang Construction |
| Ningbo Tip vs. Queclink Wireless Solutions | Ningbo Tip vs. Mengtian Home Group | Ningbo Tip vs. Bingo Software Co | Ningbo Tip vs. Sunny Loan Top |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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