Correlation Between Hi Trend and Ming Yang
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By analyzing existing cross correlation between Hi Trend TechCo and Ming Yang Smart, you can compare the effects of market volatilities on Hi Trend 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 Hi Trend with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hi Trend and Ming Yang.
Diversification Opportunities for Hi Trend and Ming Yang
Very poor diversification
The 3 months correlation between 688391 and Ming is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Hi Trend TechCo 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 Hi Trend 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 Hi Trend TechCo 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 Hi Trend i.e., Hi Trend and Ming Yang go up and down completely randomly.
Pair Corralation between Hi Trend and Ming Yang
Assuming the 90 days trading horizon Hi Trend TechCo is expected to generate 1.32 times more return on investment than Ming Yang. However, Hi Trend is 1.32 times more volatile than Ming Yang Smart. It trades about -0.02 of its potential returns per unit of risk. Ming Yang Smart is currently generating about -0.05 per unit of risk. If you would invest 5,571 in Hi Trend TechCo on August 24, 2024 and sell it today you would lose (2,446) from holding Hi Trend TechCo or give up 43.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hi Trend TechCo vs. Ming Yang Smart
Performance |
| Timeline |
| Hi Trend TechCo |
| Ming Yang Smart |
Hi Trend and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hi Trend and Ming Yang
The main advantage of trading using opposite Hi Trend and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hi Trend 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.| Hi Trend vs. Anhui Transport Consulting | Hi Trend vs. State Grid InformationCommunication | Hi Trend vs. Shanghai Metersbonwe FashionAccessories | Hi Trend vs. Xiangyang Automobile Bearing |
| Ming Yang vs. Hoshine Silicon Ind | Ming Yang vs. Miracll Chemicals Co | Ming Yang vs. Vontron Technology Co | Ming Yang vs. Lander Sports Development |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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