Correlation Between Xiamen East and Ming Yang
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By analyzing existing cross correlation between Xiamen East Asia and Ming Yang Smart, you can compare the effects of market volatilities on Xiamen East 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 Xiamen East with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen East and Ming Yang.
Diversification Opportunities for Xiamen East and Ming Yang
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiamen and Ming is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen East Asia 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 Xiamen East 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 Xiamen East Asia 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 Xiamen East i.e., Xiamen East and Ming Yang go up and down completely randomly.
Pair Corralation between Xiamen East and Ming Yang
Assuming the 90 days trading horizon Xiamen East Asia is expected to generate 1.15 times more return on investment than Ming Yang. However, Xiamen East is 1.15 times more volatile than Ming Yang Smart. It trades about 0.02 of its potential returns per unit of risk. Ming Yang Smart is currently generating about -0.05 per unit of risk. If you would invest 941.00 in Xiamen East Asia on August 24, 2024 and sell it today you would earn a total of 114.00 from holding Xiamen East Asia or generate 12.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen East Asia vs. Ming Yang Smart
Performance |
| Timeline |
| Xiamen East Asia |
| Ming Yang Smart |
Xiamen East and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen East and Ming Yang
The main advantage of trading using opposite Xiamen East and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen East 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.| Xiamen East vs. Chengtun Mining Group | Xiamen East vs. Anhui Deli Household | Xiamen East vs. Sichuan Yahua Industrial | Xiamen East vs. Offshore Oil Engineering |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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