Correlation Between China National and Ming Yang
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By analyzing existing cross correlation between China National Software and Ming Yang Smart, you can compare the effects of market volatilities on China National 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 China National with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of China National and Ming Yang.
Diversification Opportunities for China National and Ming Yang
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Ming is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding China National 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 China National 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 China National 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 China National i.e., China National and Ming Yang go up and down completely randomly.
Pair Corralation between China National and Ming Yang
Assuming the 90 days trading horizon China National Software is expected to generate 1.22 times more return on investment than Ming Yang. However, China National is 1.22 times more volatile than Ming Yang Smart. It trades about 0.06 of its potential returns per unit of risk. Ming Yang Smart is currently generating about 0.03 per unit of risk. If you would invest 3,900 in China National Software on September 3, 2024 and sell it today you would earn a total of 1,646 from holding China National Software or generate 42.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China National Software vs. Ming Yang Smart
Performance |
| Timeline |
| China National Software |
| Ming Yang Smart |
China National and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China National and Ming Yang
The main advantage of trading using opposite China National and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China National 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.| China National vs. Shandong Hi Speed RoadBridge | China National vs. Huatian Hotel Group | China National vs. Jiangsu Broadcasting Cable | China National vs. Glodon Software Co |
| Ming Yang vs. Shenzhen Kexin Communication | Ming Yang vs. Wintao Communications Co | Ming Yang vs. China Sports Industry | Ming Yang vs. State Grid InformationCommunication |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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