Correlation Between Ming Yang and GreenTech Environmental

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Ming Yang and GreenTech Environmental at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ming Yang and GreenTech Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ming Yang Smart and GreenTech Environmental Co, you can compare the effects of market volatilities on Ming Yang and GreenTech Environmental 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 GreenTech Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and GreenTech Environmental.

Diversification Opportunities for Ming Yang and GreenTech Environmental

0.74
  Correlation Coefficient

Poor diversification

The 3 months correlation between Ming and GreenTech is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and GreenTech Environmental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenTech Environmental 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 GreenTech Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenTech Environmental has no effect on the direction of Ming Yang i.e., Ming Yang and GreenTech Environmental go up and down completely randomly.

Pair Corralation between Ming Yang and GreenTech Environmental

Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the GreenTech Environmental. In addition to that, Ming Yang is 1.09 times more volatile than GreenTech Environmental Co. It trades about -0.21 of its total potential returns per unit of risk. GreenTech Environmental Co is currently generating about 0.15 per unit of volatility. If you would invest  1,325  in GreenTech Environmental Co on November 4, 2024 and sell it today you would earn a total of  60.00  from holding GreenTech Environmental Co or generate 4.53% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Ming Yang Smart  vs.  GreenTech Environmental Co

 Performance 
       Timeline  
Ming Yang Smart 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Ming Yang Smart has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
GreenTech Environmental 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in GreenTech Environmental Co are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, GreenTech Environmental is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ming Yang and GreenTech Environmental Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ming Yang and GreenTech Environmental

The main advantage of trading using opposite Ming Yang and GreenTech Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, GreenTech Environmental 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 GreenTech Environmental will offset losses from the drop in GreenTech Environmental's long position.
The idea behind Ming Yang Smart and GreenTech Environmental Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

Other Complementary Tools

Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Transaction History
View history of all your transactions and understand their impact on performance
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities