Correlation Between Loongson Technology and Ming Yang
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By analyzing existing cross correlation between Loongson Technology Corp and Ming Yang Smart, you can compare the effects of market volatilities on Loongson Technology 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 Loongson Technology with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loongson Technology and Ming Yang.
Diversification Opportunities for Loongson Technology and Ming Yang
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Loongson and Ming is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Loongson Technology Corp 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 Loongson Technology 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 Loongson Technology Corp 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 Loongson Technology i.e., Loongson Technology and Ming Yang go up and down completely randomly.
Pair Corralation between Loongson Technology and Ming Yang
Assuming the 90 days trading horizon Loongson Technology Corp is expected to generate 1.47 times more return on investment than Ming Yang. However, Loongson Technology is 1.47 times more volatile than Ming Yang Smart. It trades about 0.17 of its potential returns per unit of risk. Ming Yang Smart is currently generating about 0.23 per unit of risk. If you would invest 8,969 in Loongson Technology Corp on September 23, 2024 and sell it today you would earn a total of 5,429 from holding Loongson Technology Corp or generate 60.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Loongson Technology Corp vs. Ming Yang Smart
Performance |
Timeline |
Loongson Technology Corp |
Ming Yang Smart |
Loongson Technology and Ming Yang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Loongson Technology and Ming Yang
The main advantage of trading using opposite Loongson Technology and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loongson Technology 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.Loongson Technology vs. Ming Yang Smart | Loongson Technology vs. 159681 | Loongson Technology vs. 159005 | Loongson Technology vs. Loctek Ergonomic Technology |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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