Correlation Between Ming Yang and GreenTech Environmental
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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 Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Ming Yang Smart vs. GreenTech Environmental Co
Performance |
Timeline |
Ming Yang Smart |
GreenTech Environmental |
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.Ming Yang vs. Tongxing Environmental Protection | Ming Yang vs. Shenzhen MYS Environmental | Ming Yang vs. Humanwell Healthcare Group | Ming Yang vs. Healthcare Co |
GreenTech Environmental vs. Keeson Technology Corp | GreenTech Environmental vs. UCloud Technology Co | GreenTech Environmental vs. Qingdao Haier Biomedical | GreenTech Environmental vs. Sino Medical Sciences |
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.
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