Correlation Between Shanghai Broadband and Ming Yang
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By analyzing existing cross correlation between Shanghai Broadband Technology and Ming Yang Smart, you can compare the effects of market volatilities on Shanghai Broadband 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 Shanghai Broadband with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Broadband and Ming Yang.
Diversification Opportunities for Shanghai Broadband and Ming Yang
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Ming is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Broadband Technology 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 Shanghai Broadband 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 Shanghai Broadband Technology 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 Shanghai Broadband i.e., Shanghai Broadband and Ming Yang go up and down completely randomly.
Pair Corralation between Shanghai Broadband and Ming Yang
Assuming the 90 days trading horizon Shanghai Broadband Technology is expected to under-perform the Ming Yang. In addition to that, Shanghai Broadband is 1.52 times more volatile than Ming Yang Smart. It trades about -0.4 of its total potential returns per unit of risk. Ming Yang Smart is currently generating about -0.6 per unit of volatility. If you would invest 1,436 in Ming Yang Smart on October 9, 2024 and sell it today you would lose (348.00) from holding Ming Yang Smart or give up 24.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Broadband Technology vs. Ming Yang Smart
Performance |
| Timeline |
| Shanghai Broadband |
| Ming Yang Smart |
Shanghai Broadband and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Broadband and Ming Yang
The main advantage of trading using opposite Shanghai Broadband and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Broadband 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.| Shanghai Broadband vs. Zijin Mining Group | Shanghai Broadband vs. Wanhua Chemical Group | Shanghai Broadband vs. Baoshan Iron Steel | Shanghai Broadband vs. Shandong Gold Mining |
| Ming Yang vs. Talkweb Information System | Ming Yang vs. Bank of Communications | Ming Yang vs. Xiangyang Automobile Bearing | Ming Yang vs. Hygon Information Technology |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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