Correlation Between Ming Yang and TCL Zhonghuan
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By analyzing existing cross correlation between Ming Yang Smart and TCL Zhonghuan Renewable, you can compare the effects of market volatilities on Ming Yang and TCL Zhonghuan 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 TCL Zhonghuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and TCL Zhonghuan.
Diversification Opportunities for Ming Yang and TCL Zhonghuan
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ming and TCL is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and TCL Zhonghuan Renewable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TCL Zhonghuan Renewable 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 TCL Zhonghuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TCL Zhonghuan Renewable has no effect on the direction of Ming Yang i.e., Ming Yang and TCL Zhonghuan go up and down completely randomly.
Pair Corralation between Ming Yang and TCL Zhonghuan
Assuming the 90 days trading horizon Ming Yang Smart is expected to generate 0.86 times more return on investment than TCL Zhonghuan. However, Ming Yang Smart is 1.16 times less risky than TCL Zhonghuan. It trades about 0.09 of its potential returns per unit of risk. TCL Zhonghuan Renewable is currently generating about 0.04 per unit of risk. If you would invest 981.00 in Ming Yang Smart on September 24, 2024 and sell it today you would earn a total of 309.00 from holding Ming Yang Smart or generate 31.5% 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. TCL Zhonghuan Renewable
Performance |
Timeline |
Ming Yang Smart |
TCL Zhonghuan Renewable |
Ming Yang and TCL Zhonghuan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ming Yang and TCL Zhonghuan
The main advantage of trading using opposite Ming Yang and TCL Zhonghuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, TCL Zhonghuan 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 TCL Zhonghuan will offset losses from the drop in TCL Zhonghuan'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 |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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