Correlation Between Hangzhou Pinming and Ming Yang
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By analyzing existing cross correlation between Hangzhou Pinming Software and Ming Yang Smart, you can compare the effects of market volatilities on Hangzhou Pinming 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 Hangzhou Pinming with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Pinming and Ming Yang.
Diversification Opportunities for Hangzhou Pinming and Ming Yang
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hangzhou and Ming is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Pinming Software 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 Hangzhou Pinming 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 Hangzhou Pinming Software 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 Hangzhou Pinming i.e., Hangzhou Pinming and Ming Yang go up and down completely randomly.
Pair Corralation between Hangzhou Pinming and Ming Yang
Assuming the 90 days trading horizon Hangzhou Pinming is expected to generate 2.27 times less return on investment than Ming Yang. In addition to that, Hangzhou Pinming is 1.23 times more volatile than Ming Yang Smart. It trades about 0.09 of its total potential returns per unit of risk. Ming Yang Smart is currently generating about 0.26 per unit of volatility. If you would invest 1,204 in Ming Yang Smart on September 1, 2024 and sell it today you would earn a total of 216.00 from holding Ming Yang Smart or generate 17.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Pinming Software vs. Ming Yang Smart
Performance |
| Timeline |
| Hangzhou Pinming Software |
| Ming Yang Smart |
Hangzhou Pinming and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Pinming and Ming Yang
The main advantage of trading using opposite Hangzhou Pinming and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Pinming 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.| Hangzhou Pinming vs. Ming Yang Smart | Hangzhou Pinming vs. 159681 | Hangzhou Pinming vs. 159005 | Hangzhou Pinming vs. Loctek Ergonomic Technology |
| Ming Yang vs. Xilong Chemical Co | Ming Yang vs. Wuxi Chemical Equipment | Ming Yang vs. Shenyang Chemical Industry | Ming Yang vs. Tianshui Huatian 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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