Correlation Between Ming Yang and Chongqing Changan
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By analyzing existing cross correlation between Ming Yang Smart and Chongqing Changan Automobile, you can compare the effects of market volatilities on Ming Yang and Chongqing Changan 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 Chongqing Changan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Chongqing Changan.
Diversification Opportunities for Ming Yang and Chongqing Changan
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ming and Chongqing is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Chongqing Changan Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Changan 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 Chongqing Changan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Changan has no effect on the direction of Ming Yang i.e., Ming Yang and Chongqing Changan go up and down completely randomly.
Pair Corralation between Ming Yang and Chongqing Changan
Assuming the 90 days trading horizon Ming Yang Smart is expected to generate 1.19 times more return on investment than Chongqing Changan. However, Ming Yang is 1.19 times more volatile than Chongqing Changan Automobile. It trades about 0.21 of its potential returns per unit of risk. Chongqing Changan Automobile is currently generating about 0.08 per unit of risk. If you would invest 851.00 in Ming Yang Smart on September 24, 2024 and sell it today you would earn a total of 439.00 from holding Ming Yang Smart or generate 51.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Ming Yang Smart vs. Chongqing Changan Automobile
Performance |
Timeline |
Ming Yang Smart |
Chongqing Changan |
Ming Yang and Chongqing Changan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ming Yang and Chongqing Changan
The main advantage of trading using opposite Ming Yang and Chongqing Changan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Chongqing Changan 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 Chongqing Changan will offset losses from the drop in Chongqing Changan's long position.Ming Yang vs. Jiangsu Xinri E Vehicle | Ming Yang vs. Beijing Mainstreets Investment | Ming Yang vs. Postal Savings Bank | Ming Yang vs. Ningbo Fangzheng Automobile |
Chongqing Changan vs. New China Life | Chongqing Changan vs. Ming Yang Smart | Chongqing Changan vs. 159681 | Chongqing Changan vs. 159005 |
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 Stocks Directory module to find actively traded stocks across global markets.
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