Correlation Between Hailiang Education and China Ming
Can any of the company-specific risk be diversified away by investing in both Hailiang Education and China Ming 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 Hailiang Education and China Ming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hailiang Education Group and China Ming Yang, you can compare the effects of market volatilities on Hailiang Education and China Ming 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 Hailiang Education with a short position of China Ming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hailiang Education and China Ming.
Diversification Opportunities for Hailiang Education and China Ming
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hailiang and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hailiang Education Group and China Ming Yang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Ming Yang and Hailiang Education 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 Hailiang Education Group are associated (or correlated) with China Ming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Ming Yang has no effect on the direction of Hailiang Education i.e., Hailiang Education and China Ming go up and down completely randomly.
Pair Corralation between Hailiang Education and China Ming
If you would invest (100.00) in China Ming Yang on January 25, 2024 and sell it today you would earn a total of 100.00 from holding China Ming Yang or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hailiang Education Group vs. China Ming Yang
Performance |
| Timeline |
| Hailiang Education |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| China Ming Yang |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hailiang Education and China Ming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hailiang Education and China Ming
The main advantage of trading using opposite Hailiang Education and China Ming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hailiang Education position performs unexpectedly, China Ming 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 China Ming will offset losses from the drop in China Ming's long position.| Hailiang Education vs. Aduro Clean Technologies | Hailiang Education vs. Anterix | Hailiang Education vs. HydroGraph Clean Power | Hailiang Education vs. Joby Aviation |
| China Ming vs. Morgan Stanley | China Ming vs. Rave Restaurant Group | China Ming vs. Pyrophyte Acquisition Corp | China Ming vs. Inflection Point Acquisition |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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