Correlation Between NV5 Global and Ming Shing
Can any of the company-specific risk be diversified away by investing in both NV5 Global and Ming Shing at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining NV5 Global and Ming Shing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NV5 Global and Ming Shing Group, you can compare the effects of market volatilities on NV5 Global and Ming Shing 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 NV5 Global with a short position of Ming Shing. Check out your portfolio center. Please also check ongoing floating volatility patterns of NV5 Global and Ming Shing.
Diversification Opportunities for NV5 Global and Ming Shing
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NV5 and Ming is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding NV5 Global and Ming Shing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ming Shing Group and NV5 Global 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 NV5 Global are associated (or correlated) with Ming Shing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ming Shing Group has no effect on the direction of NV5 Global i.e., NV5 Global and Ming Shing go up and down completely randomly.
Pair Corralation between NV5 Global and Ming Shing
Given the investment horizon of 90 days NV5 Global is expected to under-perform the Ming Shing. But the stock apears to be less risky and, when comparing its historical volatility, NV5 Global is 10.72 times less risky than Ming Shing. The stock trades about -0.26 of its potential returns per unit of risk. The Ming Shing Group is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 584.00 in Ming Shing Group on October 15, 2024 and sell it today you would earn a total of 135.00 from holding Ming Shing Group or generate 23.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
NV5 Global vs. Ming Shing Group
Performance |
| Timeline |
| NV5 Global |
| Ming Shing Group |
NV5 Global and Ming Shing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NV5 Global and Ming Shing
The main advantage of trading using opposite NV5 Global and Ming Shing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NV5 Global position performs unexpectedly, Ming Shing 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 Shing will offset losses from the drop in Ming Shing's long position.| NV5 Global vs. EMCOR Group | NV5 Global vs. Comfort Systems USA | NV5 Global vs. Primoris Services | NV5 Global vs. Granite Construction Incorporated |
| Ming Shing vs. Kulicke and Soffa | Ming Shing vs. Arm Holdings plc | Ming Shing vs. Diageo PLC ADR | Ming Shing vs. FormFactor |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |