Correlation Between Ming Le and ALERION CLEANPOWER

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

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

Diversification Opportunities for Ming Le and ALERION CLEANPOWER

0.17

Correlation Coefficient

Ming Le  ALERION CLEANPOWER

Average diversification

The 3 months correlation between Ming and ALERION is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Ming Le Sports and ALERION CLEANPOWER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALERION CLEANPOWER and Ming Le 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 Le Sports are associated (or correlated) with ALERION CLEANPOWER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALERION CLEANPOWER has no effect on the direction of Ming Le i.e., Ming Le and ALERION CLEANPOWER go up and down completely randomly.

Pair Corralation between Ming Le and ALERION CLEANPOWER

Assuming the 90 days trading horizon Ming Le Sports is expected to generate 1.03 times more return on investment than ALERION CLEANPOWER. However, Ming Le is 1.03 times more volatile than ALERION CLEANPOWER. It trades about 0.0 of its potential returns per unit of risk. ALERION CLEANPOWER is currently generating about -0.01 per unit of risk. If you would invest  129.00  in Ming Le Sports on May 5, 2025 and sell it today you would lose (25.00) from holding Ming Le Sports or give up 19.38% of portfolio value over 90 days.

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

Ming Le Sports  vs.  ALERION CLEANPOWER

Ming Le Sports

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ming Le Sports are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Ming Le is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

ALERION CLEANPOWER

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ALERION CLEANPOWER are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ALERION CLEANPOWER reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ming Le and ALERION CLEANPOWER

The main advantage of trading using opposite Ming Le and ALERION CLEANPOWER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Le position performs unexpectedly, ALERION CLEANPOWER 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 ALERION CLEANPOWER will offset losses from the drop in ALERION CLEANPOWER's long position.

The idea behind Ming Le Sports and ALERION CLEANPOWER 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.

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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.