Correlation Between Shenzhen Kexin and Ming Yang
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By analyzing existing cross correlation between Shenzhen Kexin Communication and Ming Yang Smart, you can compare the effects of market volatilities on Shenzhen Kexin 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 Shenzhen Kexin with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and Ming Yang.
Diversification Opportunities for Shenzhen Kexin and Ming Yang
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Ming is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication 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 Shenzhen Kexin 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 Shenzhen Kexin Communication 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 Shenzhen Kexin i.e., Shenzhen Kexin and Ming Yang go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and Ming Yang
Assuming the 90 days trading horizon Shenzhen Kexin Communication is expected to under-perform the Ming Yang. In addition to that, Shenzhen Kexin is 1.36 times more volatile than Ming Yang Smart. It trades about -0.2 of its total potential returns per unit of risk. Ming Yang Smart is currently generating about 0.09 per unit of volatility. If you would invest 1,164 in Ming Yang Smart on August 25, 2024 and sell it today you would earn a total of 51.00 from holding Ming Yang Smart or generate 4.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Kexin Communication vs. Ming Yang Smart
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| Ming Yang Smart |
Shenzhen Kexin and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and Ming Yang
The main advantage of trading using opposite Shenzhen Kexin and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin 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.| Shenzhen Kexin vs. Ming Yang Smart | Shenzhen Kexin vs. 159005 | Shenzhen Kexin vs. Loctek Ergonomic Technology | Shenzhen Kexin vs. Xiamen East Asia |
| Ming Yang vs. Hoshine Silicon Ind | Ming Yang vs. Miracll Chemicals Co | Ming Yang vs. Vontron Technology Co | Ming Yang vs. Lander Sports Development |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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