Correlation Between Jiangsu Yanghe and Ming Yang
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By analyzing existing cross correlation between Jiangsu Yanghe Brewery and Ming Yang Smart, you can compare the effects of market volatilities on Jiangsu Yanghe 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 Jiangsu Yanghe with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yanghe and Ming Yang.
Diversification Opportunities for Jiangsu Yanghe and Ming Yang
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Ming is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yanghe Brewery 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 Jiangsu Yanghe 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 Jiangsu Yanghe Brewery 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 Jiangsu Yanghe i.e., Jiangsu Yanghe and Ming Yang go up and down completely randomly.
Pair Corralation between Jiangsu Yanghe and Ming Yang
Assuming the 90 days trading horizon Jiangsu Yanghe Brewery is expected to generate 0.43 times more return on investment than Ming Yang. However, Jiangsu Yanghe Brewery is 2.31 times less risky than Ming Yang. It trades about -0.15 of its potential returns per unit of risk. Ming Yang Smart is currently generating about -0.38 per unit of risk. If you would invest 8,312 in Jiangsu Yanghe Brewery on October 29, 2024 and sell it today you would lose (268.00) from holding Jiangsu Yanghe Brewery or give up 3.22% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangsu Yanghe Brewery vs. Ming Yang Smart
Performance |
Timeline |
Jiangsu Yanghe Brewery |
Ming Yang Smart |
Jiangsu Yanghe and Ming Yang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangsu Yanghe and Ming Yang
The main advantage of trading using opposite Jiangsu Yanghe and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yanghe 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.Jiangsu Yanghe vs. Haima Automobile Group | Jiangsu Yanghe vs. Wintao Communications Co | Jiangsu Yanghe vs. Hunan Mendale Hometextile | Jiangsu Yanghe vs. Beijing Bewinner Communications |
Ming Yang vs. Eyebright Medical Technology | Ming Yang vs. Anhui Fuhuang Steel | Ming Yang vs. Kangping Technology Co | Ming Yang vs. Jiujiang Shanshui Technology |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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