Correlation Between Nanhua Bio and Ming Yang
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By analyzing existing cross correlation between Nanhua Bio Medicine and Ming Yang Smart, you can compare the effects of market volatilities on Nanhua Bio 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 Nanhua Bio with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanhua Bio and Ming Yang.
Diversification Opportunities for Nanhua Bio and Ming Yang
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nanhua and Ming is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Nanhua Bio Medicine 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 Nanhua Bio 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 Nanhua Bio Medicine 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 Nanhua Bio i.e., Nanhua Bio and Ming Yang go up and down completely randomly.
Pair Corralation between Nanhua Bio and Ming Yang
Assuming the 90 days trading horizon Nanhua Bio Medicine is expected to under-perform the Ming Yang. But the stock apears to be less risky and, when comparing its historical volatility, Nanhua Bio Medicine is 1.16 times less risky than Ming Yang. The stock trades about -0.02 of its potential returns per unit of risk. The Ming Yang Smart is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,338 in Ming Yang Smart on September 12, 2024 and sell it today you would earn a total of 84.00 from holding Ming Yang Smart or generate 6.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanhua Bio Medicine vs. Ming Yang Smart
Performance |
| Timeline |
| Nanhua Bio Medicine |
| Ming Yang Smart |
Nanhua Bio and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanhua Bio and Ming Yang
The main advantage of trading using opposite Nanhua Bio and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanhua Bio 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.| Nanhua Bio vs. Kweichow Moutai Co | Nanhua Bio vs. Shenzhen Mindray Bio Medical | Nanhua Bio vs. G bits Network Technology | Nanhua Bio vs. Beijing Roborock Technology |
| Ming Yang vs. Jiangyin Jianghua Microelectronics | Ming Yang vs. HaiXin Foods Co | Ming Yang vs. Fujian Anjoy Foods | Ming Yang vs. Success Electronics |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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