Correlation Between HUAQIN TECHNOLOGY and Ming Yang
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By analyzing existing cross correlation between HUAQIN TECHNOLOGY LTD and Ming Yang Smart, you can compare the effects of market volatilities on HUAQIN TECHNOLOGY and Ming Yang 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 HUAQIN TECHNOLOGY with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUAQIN TECHNOLOGY and Ming Yang.
Diversification Opportunities for HUAQIN TECHNOLOGY and Ming Yang
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUAQIN and Ming is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding HUAQIN TECHNOLOGY LTD and Ming Yang Smart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ming Yang Smart and HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY LTD are associated (or correlated) with Ming Yang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ming Yang Smart has no effect on the direction of HUAQIN TECHNOLOGY i.e., HUAQIN TECHNOLOGY and Ming Yang go up and down completely randomly.
Pair Corralation between HUAQIN TECHNOLOGY and Ming Yang
Assuming the 90 days trading horizon HUAQIN TECHNOLOGY LTD is expected to generate 1.81 times more return on investment than Ming Yang. However, HUAQIN TECHNOLOGY is 1.81 times more volatile than Ming Yang Smart. It trades about 0.12 of its potential returns per unit of risk. Ming Yang Smart is currently generating about -0.6 per unit of risk. If you would invest 6,385 in HUAQIN TECHNOLOGY LTD on October 8, 2024 and sell it today you would earn a total of 539.00 from holding HUAQIN TECHNOLOGY LTD or generate 8.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUAQIN TECHNOLOGY LTD vs. Ming Yang Smart
Performance |
| Timeline |
| HUAQIN TECHNOLOGY LTD |
| Ming Yang Smart |
HUAQIN TECHNOLOGY and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUAQIN TECHNOLOGY and Ming Yang
The main advantage of trading using opposite HUAQIN TECHNOLOGY and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUAQIN TECHNOLOGY position performs unexpectedly, Ming Yang 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 Ming Yang will offset losses from the drop in Ming Yang's long position.| HUAQIN TECHNOLOGY vs. Sharetronic Data Technology | HUAQIN TECHNOLOGY vs. Sichuan Furong Technology | HUAQIN TECHNOLOGY vs. Emdoor Information Co | HUAQIN TECHNOLOGY vs. Guodian Nanjing Automation |
| Ming Yang vs. Talkweb Information System | Ming Yang vs. Bank of Communications | Ming Yang vs. Xiangyang Automobile Bearing | Ming Yang vs. Hygon Information 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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