Correlation Between China Baoan and Ming Yang
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By analyzing existing cross correlation between China Baoan Group and Ming Yang Smart, you can compare the effects of market volatilities on China Baoan and Ming Yang 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 China Baoan with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Baoan and Ming Yang.
Diversification Opportunities for China Baoan and Ming Yang
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Ming is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding China Baoan Group and Ming Yang Smart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ming Yang Smart and China Baoan 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 China Baoan Group are associated (or correlated) with Ming Yang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ming Yang Smart has no effect on the direction of China Baoan i.e., China Baoan and Ming Yang go up and down completely randomly.
Pair Corralation between China Baoan and Ming Yang
Assuming the 90 days trading horizon China Baoan is expected to generate 2.59 times less return on investment than Ming Yang. But when comparing it to its historical volatility, China Baoan Group is 1.03 times less risky than Ming Yang. It trades about 0.04 of its potential returns per unit of risk. Ming Yang Smart is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 944.00 in Ming Yang Smart on September 26, 2024 and sell it today you would earn a total of 338.00 from holding Ming Yang Smart or generate 35.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Baoan Group vs. Ming Yang Smart
Performance |
| Timeline |
| China Baoan Group |
| Ming Yang Smart |
China Baoan and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Baoan and Ming Yang
The main advantage of trading using opposite China Baoan and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Baoan position performs unexpectedly, Ming Yang 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 Yang will offset losses from the drop in Ming Yang's long position.| China Baoan vs. Ming Yang Smart | China Baoan vs. 159681 | China Baoan vs. 159005 | China Baoan vs. Loctek Ergonomic Technology |
| Ming Yang vs. Healthcare Co | Ming Yang vs. Sanbo Hospital Management | Ming Yang vs. Everjoy Health Group | Ming Yang vs. Huaxia Eye Hospital |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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