Correlation Between Ming Yang and Henan Lantian
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By analyzing existing cross correlation between Ming Yang Smart and Henan Lantian Gas, you can compare the effects of market volatilities on Ming Yang and Henan Lantian 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 Henan Lantian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Henan Lantian.
Diversification Opportunities for Ming Yang and Henan Lantian
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ming and Henan is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Henan Lantian Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Lantian Gas 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 Henan Lantian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Lantian Gas has no effect on the direction of Ming Yang i.e., Ming Yang and Henan Lantian go up and down completely randomly.
Pair Corralation between Ming Yang and Henan Lantian
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the Henan Lantian. In addition to that, Ming Yang is 1.49 times more volatile than Henan Lantian Gas. It trades about -0.06 of its total potential returns per unit of risk. Henan Lantian Gas is currently generating about 0.06 per unit of volatility. If you would invest 743.00 in Henan Lantian Gas on October 16, 2024 and sell it today you would earn a total of 331.00 from holding Henan Lantian Gas or generate 44.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. Henan Lantian Gas
Performance |
| Timeline |
| Ming Yang Smart |
| Henan Lantian Gas |
Ming Yang and Henan Lantian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Henan Lantian
The main advantage of trading using opposite Ming Yang and Henan Lantian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Henan Lantian 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 Henan Lantian will offset losses from the drop in Henan Lantian's long position.| Ming Yang vs. Dongfeng Automobile Co | Ming Yang vs. Nanxing Furniture Machinery | Ming Yang vs. Songz Automobile Air | Ming Yang vs. Anhui Jianghuai Automobile |
| Henan Lantian vs. Ming Yang Smart | Henan Lantian vs. 159681 | Henan Lantian vs. 159005 | Henan Lantian 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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