Correlation Between Allied Machinery and Ming Yang
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By analyzing existing cross correlation between Allied Machinery Co and Ming Yang Smart, you can compare the effects of market volatilities on Allied Machinery 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 Allied Machinery with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allied Machinery and Ming Yang.
Diversification Opportunities for Allied Machinery and Ming Yang
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Allied and Ming is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Allied Machinery Co 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 Allied Machinery 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 Allied Machinery Co 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 Allied Machinery i.e., Allied Machinery and Ming Yang go up and down completely randomly.
Pair Corralation between Allied Machinery and Ming Yang
Assuming the 90 days trading horizon Allied Machinery Co is expected to generate 1.01 times more return on investment than Ming Yang. However, Allied Machinery is 1.01 times more volatile than Ming Yang Smart. It trades about 0.13 of its potential returns per unit of risk. Ming Yang Smart is currently generating about 0.09 per unit of risk. If you would invest 1,539 in Allied Machinery Co on August 29, 2024 and sell it today you would earn a total of 101.00 from holding Allied Machinery Co or generate 6.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allied Machinery Co vs. Ming Yang Smart
Performance |
| Timeline |
| Allied Machinery |
| Ming Yang Smart |
Allied Machinery and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allied Machinery and Ming Yang
The main advantage of trading using opposite Allied Machinery and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allied Machinery 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.| Allied Machinery vs. Biwin Storage Technology | Allied Machinery vs. PetroChina Co Ltd | Allied Machinery vs. Industrial and Commercial | Allied Machinery vs. China Construction Bank |
| Ming Yang vs. Northern United Publishing | Ming Yang vs. Southern PublishingMedia Co | Ming Yang vs. Guangzhou Haige Communications | Ming Yang vs. China Publishing Media |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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