Correlation Between Sichuan Jiuyuan and Ming Yang
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By analyzing existing cross correlation between Sichuan Jiuyuan Yinhai and Ming Yang Smart, you can compare the effects of market volatilities on Sichuan Jiuyuan 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 Sichuan Jiuyuan with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Jiuyuan and Ming Yang.
Diversification Opportunities for Sichuan Jiuyuan and Ming Yang
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sichuan and Ming is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Jiuyuan Yinhai 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 Sichuan Jiuyuan 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 Sichuan Jiuyuan Yinhai 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 Sichuan Jiuyuan i.e., Sichuan Jiuyuan and Ming Yang go up and down completely randomly.
Pair Corralation between Sichuan Jiuyuan and Ming Yang
Assuming the 90 days trading horizon Sichuan Jiuyuan Yinhai is expected to generate 1.68 times more return on investment than Ming Yang. However, Sichuan Jiuyuan is 1.68 times more volatile than Ming Yang Smart. It trades about 0.03 of its potential returns per unit of risk. Ming Yang Smart is currently generating about -0.04 per unit of risk. If you would invest 1,631 in Sichuan Jiuyuan Yinhai on September 2, 2024 and sell it today you would earn a total of 484.00 from holding Sichuan Jiuyuan Yinhai or generate 29.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Jiuyuan Yinhai vs. Ming Yang Smart
Performance |
| Timeline |
| Sichuan Jiuyuan Yinhai |
| Ming Yang Smart |
Sichuan Jiuyuan and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Jiuyuan and Ming Yang
The main advantage of trading using opposite Sichuan Jiuyuan and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Jiuyuan 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.| Sichuan Jiuyuan vs. Ming Yang Smart | Sichuan Jiuyuan vs. 159681 | Sichuan Jiuyuan vs. 159005 | Sichuan Jiuyuan vs. Loctek Ergonomic Technology |
| Ming Yang vs. Jonjee Hi tech Industrial | Ming Yang vs. Central Plains Environment | Ming Yang vs. Shenzhen MYS Environmental | Ming Yang vs. Sichuan Yahua Industrial |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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