Correlation Between Ming Yang and Tianjin Pengling
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By analyzing existing cross correlation between Ming Yang Smart and Tianjin Pengling Rubber, you can compare the effects of market volatilities on Ming Yang and Tianjin Pengling 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 Tianjin Pengling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Tianjin Pengling.
Diversification Opportunities for Ming Yang and Tianjin Pengling
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ming and Tianjin is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Tianjin Pengling Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Pengling Rubber 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 Tianjin Pengling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Pengling Rubber has no effect on the direction of Ming Yang i.e., Ming Yang and Tianjin Pengling go up and down completely randomly.
Pair Corralation between Ming Yang and Tianjin Pengling
Assuming the 90 days trading horizon Ming Yang Smart is expected to generate 0.96 times more return on investment than Tianjin Pengling. However, Ming Yang Smart is 1.04 times less risky than Tianjin Pengling. It trades about 0.26 of its potential returns per unit of risk. Tianjin Pengling Rubber is currently generating about 0.15 per unit of risk. If you would invest 850.00 in Ming Yang Smart on September 6, 2024 and sell it today you would earn a total of 570.00 from holding Ming Yang Smart or generate 67.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Ming Yang Smart vs. Tianjin Pengling Rubber
Performance |
Timeline |
Ming Yang Smart |
Tianjin Pengling Rubber |
Ming Yang and Tianjin Pengling Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ming Yang and Tianjin Pengling
The main advantage of trading using opposite Ming Yang and Tianjin Pengling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Tianjin Pengling 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 Tianjin Pengling will offset losses from the drop in Tianjin Pengling's long position.Ming Yang vs. Ye Chiu Metal | Ming Yang vs. Shandong Hongchuang Aluminum | Ming Yang vs. Kangxin New Materials | Ming Yang vs. Sunny Loan Top |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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