Correlation Between Ameresco and Ming Shing

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

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

Diversification Opportunities for Ameresco and Ming Shing

0.37

Correlation Coefficient

Ameresco  Ming Shing

Weak diversification

The 3 months correlation between Ameresco and Ming is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Ameresco 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 Ameresco 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 Ameresco 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 Ameresco i.e., Ameresco and Ming Shing go up and down completely randomly.

Pair Corralation between Ameresco and Ming Shing

Given the investment horizon of 90 days Ameresco is expected to under-perform the Ming Shing. But the stock apears to be less risky and, when comparing its historical volatility, Ameresco is 1.65 times less risky than Ming Shing. The stock trades about -0.11 of its potential returns per unit of risk. The Ming Shing Group is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  642.00  in Ming Shing Group on December 25, 2024 and sell it today you would lose (217.00) from holding Ming Shing Group or give up 33.8% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Ameresco  vs.  Ming Shing Group

Ameresco

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ameresco has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Ming Shing Group

Risk-Adjusted Performance

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 fairly stable basic indicators, Ming Shing is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Ameresco and Ming Shing

The main advantage of trading using opposite Ameresco and Ming Shing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ameresco 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 Ameresco 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.