Correlation Between Ming Yang and New Trend
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By analyzing existing cross correlation between Ming Yang Smart and New Trend International, you can compare the effects of market volatilities on Ming Yang and New Trend 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 Ming Yang with a short position of New Trend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and New Trend.
Diversification Opportunities for Ming Yang and New Trend
Poor diversification
The 3 months correlation between Ming and New is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and New Trend International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Trend International and Ming Yang 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 Ming Yang Smart are associated (or correlated) with New Trend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Trend International has no effect on the direction of Ming Yang i.e., Ming Yang and New Trend go up and down completely randomly.
Pair Corralation between Ming Yang and New Trend
Assuming the 90 days trading horizon Ming Yang Smart is expected to generate 0.71 times more return on investment than New Trend. However, Ming Yang Smart is 1.4 times less risky than New Trend. It trades about 0.23 of its potential returns per unit of risk. New Trend International is currently generating about 0.13 per unit of risk. If you would invest 834.00 in Ming Yang Smart on September 18, 2024 and sell it today you would earn a total of 500.00 from holding Ming Yang Smart or generate 59.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.33% |
Values | Daily Returns |
Ming Yang Smart vs. New Trend International
Performance |
Timeline |
Ming Yang Smart |
New Trend International |
Ming Yang and New Trend Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ming Yang and New Trend
The main advantage of trading using opposite Ming Yang and New Trend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, New Trend 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 New Trend will offset losses from the drop in New Trend's long position.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 |
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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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