Correlation Between Guangdong Ellington and Ming Yang
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By analyzing existing cross correlation between Guangdong Ellington Electronics and Ming Yang Smart, you can compare the effects of market volatilities on Guangdong Ellington 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 Guangdong Ellington with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Ellington and Ming Yang.
Diversification Opportunities for Guangdong Ellington and Ming Yang
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangdong and Ming is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Ellington Electronic 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 Guangdong Ellington 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 Guangdong Ellington Electronics 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 Guangdong Ellington i.e., Guangdong Ellington and Ming Yang go up and down completely randomly.
Pair Corralation between Guangdong Ellington and Ming Yang
Assuming the 90 days trading horizon Guangdong Ellington Electronics is expected to generate 1.08 times more return on investment than Ming Yang. However, Guangdong Ellington is 1.08 times more volatile than Ming Yang Smart. It trades about 0.04 of its potential returns per unit of risk. Ming Yang Smart is currently generating about -0.02 per unit of risk. If you would invest 812.00 in Guangdong Ellington Electronics on November 5, 2024 and sell it today you would earn a total of 204.00 from holding Guangdong Ellington Electronics or generate 25.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Ellington Electronic vs. Ming Yang Smart
Performance |
| Timeline |
| Guangdong Ellington |
| Ming Yang Smart |
Guangdong Ellington and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Ellington and Ming Yang
The main advantage of trading using opposite Guangdong Ellington and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Ellington 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.| Guangdong Ellington vs. Peoples Insurance of | Guangdong Ellington vs. HeNan Splendor Science | Guangdong Ellington vs. Dhc Software Co | Guangdong Ellington vs. Agricultural Bank of |
| Ming Yang vs. Tongxing Environmental Protection | Ming Yang vs. Shenzhen MYS Environmental | Ming Yang vs. Humanwell Healthcare Group | Ming Yang vs. Healthcare Co |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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