Correlation Between Enlight Renewable and Ming Shing

Can any of the company-specific risk be diversified away by investing in both Enlight Renewable 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 Enlight Renewable and Ming Shing into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Enlight Renewable Energy and Ming Shing Group, you can compare the effects of market volatilities on Enlight Renewable 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 Enlight Renewable with a short position of Ming Shing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enlight Renewable and Ming Shing.

Diversification Opportunities for Enlight Renewable and Ming Shing

0.42

Correlation Coefficient

Enlight Renewable  Ming Shing

Very weak diversification

The 3 months correlation between Enlight and Ming is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Enlight Renewable Energy 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 Enlight Renewable 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 Enlight Renewable Energy 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 Enlight Renewable i.e., Enlight Renewable and Ming Shing go up and down completely randomly.

Pair Corralation between Enlight Renewable and Ming Shing

Given the investment horizon of 90 days Enlight Renewable Energy is expected to generate 0.29 times more return on investment than Ming Shing. However, Enlight Renewable Energy is 3.5 times less risky than Ming Shing. It trades about 0.01 of its potential returns per unit of risk. Ming Shing Group is currently generating about -0.11 per unit of risk. If you would invest  1,587  in Enlight Renewable Energy on September 23, 2024 and sell it today you would lose (6.00) from holding Enlight Renewable Energy or give up 0.38% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	32.31%
Values	Daily Returns

Enlight Renewable Energy  vs.  Ming Shing Group

Enlight Renewable Energy

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Enlight Renewable Energy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, Enlight Renewable is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Ming Shing Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ming Shing Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Enlight Renewable and Ming Shing

The main advantage of trading using opposite Enlight Renewable and Ming Shing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enlight Renewable 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.

The idea behind Enlight Renewable Energy and Ming Shing Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.