Correlation Between Henan Lantian and Ming Yang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Henan Lantian Gas and Ming Yang Smart, you can compare the effects of market volatilities on Henan Lantian 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 Henan Lantian with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Lantian and Ming Yang.
Diversification Opportunities for Henan Lantian and Ming Yang
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Henan and Ming is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Henan Lantian Gas 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 Henan Lantian 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 Henan Lantian Gas 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 Henan Lantian i.e., Henan Lantian and Ming Yang go up and down completely randomly.
Pair Corralation between Henan Lantian and Ming Yang
Assuming the 90 days trading horizon Henan Lantian Gas is expected to under-perform the Ming Yang. But the stock apears to be less risky and, when comparing its historical volatility, Henan Lantian Gas is 2.4 times less risky than Ming Yang. The stock trades about -0.01 of its potential returns per unit of risk. The Ming Yang Smart is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,253 in Ming Yang Smart on September 19, 2024 and sell it today you would earn a total of 81.00 from holding Ming Yang Smart or generate 6.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Henan Lantian Gas vs. Ming Yang Smart
Performance |
| Timeline |
| Henan Lantian Gas |
| Ming Yang Smart |
Henan Lantian and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Lantian and Ming Yang
The main advantage of trading using opposite Henan Lantian and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Lantian 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.| Henan Lantian vs. Liaoning Chengda Biotechnology | Henan Lantian vs. Bloomage Biotechnology Corp | Henan Lantian vs. Xiandai Investment Co | Henan Lantian vs. Maccura Biotechnology Co |
| Ming Yang vs. Great Sun Foods Co | Ming Yang vs. Guilin Seamild Foods | Ming Yang vs. Leaguer Shenzhen MicroElectronics | Ming Yang vs. HaiXin Foods 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |