Correlation Between Ming Yang and Trina Solar
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By analyzing existing cross correlation between Ming Yang Smart and Trina Solar Co, you can compare the effects of market volatilities on Ming Yang and Trina Solar 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 Trina Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Trina Solar.
Diversification Opportunities for Ming Yang and Trina Solar
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ming and Trina is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Trina Solar Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trina Solar 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 Trina Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trina Solar has no effect on the direction of Ming Yang i.e., Ming Yang and Trina Solar go up and down completely randomly.
Pair Corralation between Ming Yang and Trina Solar
Assuming the 90 days trading horizon Ming Yang Smart is expected to generate 1.87 times more return on investment than Trina Solar. However, Ming Yang is 1.87 times more volatile than Trina Solar Co. It trades about 0.01 of its potential returns per unit of risk. Trina Solar Co is currently generating about -0.23 per unit of risk. If you would invest 1,275 in Ming Yang Smart on September 25, 2024 and sell it today you would lose (4.00) from holding Ming Yang Smart or give up 0.31% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
Ming Yang Smart vs. Trina Solar Co
Performance |
Timeline |
Ming Yang Smart |
Trina Solar |
Ming Yang and Trina Solar Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ming Yang and Trina Solar
The main advantage of trading using opposite Ming Yang and Trina Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Trina Solar 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 Trina Solar will offset losses from the drop in Trina Solar's long position.Ming Yang vs. Dazhong Transportation Group | Ming Yang vs. Jiangsu Jinling Sports | Ming Yang vs. Lander Sports Development | Ming Yang vs. Sunny Loan Top |
Trina Solar vs. Ming Yang Smart | Trina Solar vs. 159681 | Trina Solar vs. 159005 | Trina Solar vs. Loctek Ergonomic Technology |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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