Correlation Between Beijing Ultrapower and Ming Yang
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By analyzing existing cross correlation between Beijing Ultrapower Software and Ming Yang Smart, you can compare the effects of market volatilities on Beijing Ultrapower 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 Beijing Ultrapower with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Ultrapower and Ming Yang.
Diversification Opportunities for Beijing Ultrapower and Ming Yang
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Beijing and Ming is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Ultrapower Software 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 Beijing Ultrapower 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 Beijing Ultrapower Software 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 Beijing Ultrapower i.e., Beijing Ultrapower and Ming Yang go up and down completely randomly.
Pair Corralation between Beijing Ultrapower and Ming Yang
Assuming the 90 days trading horizon Beijing Ultrapower Software is expected to generate 1.0 times more return on investment than Ming Yang. However, Beijing Ultrapower Software is 1.0 times less risky than Ming Yang. It trades about -0.17 of its potential returns per unit of risk. Ming Yang Smart is currently generating about -0.52 per unit of risk. If you would invest 1,226 in Beijing Ultrapower Software on October 16, 2024 and sell it today you would lose (108.00) from holding Beijing Ultrapower Software or give up 8.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Beijing Ultrapower Software vs. Ming Yang Smart
Performance |
| Timeline |
| Beijing Ultrapower |
| Ming Yang Smart |
Beijing Ultrapower and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Ultrapower and Ming Yang
The main advantage of trading using opposite Beijing Ultrapower and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Ultrapower 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.| Beijing Ultrapower vs. Shengda Mining Co | Beijing Ultrapower vs. Jiangsu Financial Leasing | Beijing Ultrapower vs. Chenzhou Jingui Silver | Beijing Ultrapower vs. China Eastern Airlines |
| Ming Yang vs. Dongfeng Automobile Co | Ming Yang vs. Nanxing Furniture Machinery | Ming Yang vs. Songz Automobile Air | Ming Yang vs. Anhui Jianghuai Automobile |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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