Correlation Between Shandong Mining and Ming Yang
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By analyzing existing cross correlation between Shandong Mining Machinery and Ming Yang Smart, you can compare the effects of market volatilities on Shandong Mining 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 Shandong Mining with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Mining and Ming Yang.
Diversification Opportunities for Shandong Mining and Ming Yang
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shandong and Ming is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Mining Machinery 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 Shandong Mining 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 Shandong Mining Machinery 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 Shandong Mining i.e., Shandong Mining and Ming Yang go up and down completely randomly.
Pair Corralation between Shandong Mining and Ming Yang
Assuming the 90 days trading horizon Shandong Mining Machinery is expected to generate 1.55 times more return on investment than Ming Yang. However, Shandong Mining is 1.55 times more volatile than Ming Yang Smart. It trades about 0.44 of its potential returns per unit of risk. Ming Yang Smart is currently generating about 0.23 per unit of risk. If you would invest 273.00 in Shandong Mining Machinery on September 5, 2024 and sell it today you would earn a total of 163.00 from holding Shandong Mining Machinery or generate 59.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Mining Machinery vs. Ming Yang Smart
Performance |
| Timeline |
| Shandong Mining Machinery |
| Ming Yang Smart |
Shandong Mining and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Mining and Ming Yang
The main advantage of trading using opposite Shandong Mining and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Mining 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.| Shandong Mining vs. Cultural Investment Holdings | Shandong Mining vs. Gome Telecom Equipment | Shandong Mining vs. Bus Online Co | Shandong Mining vs. Holitech Technology Co |
| Ming Yang vs. Kingsignal Technology Co | Ming Yang vs. Shandong Mining Machinery | Ming Yang vs. Jiangxi Selon Industrial | Ming Yang vs. Hainan Mining Co |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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