Correlation Between China Mobile and Ming Yang
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By analyzing existing cross correlation between China Mobile Limited and Ming Yang Smart, you can compare the effects of market volatilities on China Mobile 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 Mobile with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Ming Yang.
Diversification Opportunities for China Mobile and Ming Yang
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between China and Ming is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited 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 Mobile 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 Mobile Limited 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 Mobile i.e., China Mobile and Ming Yang go up and down completely randomly.
Pair Corralation between China Mobile and Ming Yang
Assuming the 90 days trading horizon China Mobile is expected to generate 2.5 times less return on investment than Ming Yang. But when comparing it to its historical volatility, China Mobile Limited is 2.05 times less risky than Ming Yang. It trades about 0.04 of its potential returns per unit of risk. Ming Yang Smart is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 918.00 in Ming Yang Smart on October 7, 2024 and sell it today you would earn a total of 203.00 from holding Ming Yang Smart or generate 22.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Ming Yang Smart
Performance |
| Timeline |
| China Mobile Limited |
| Ming Yang Smart |
China Mobile and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Ming Yang
The main advantage of trading using opposite China Mobile and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile 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 Mobile vs. Holitech Technology Co | China Mobile vs. Zotye Automobile Co | China Mobile vs. Bus Online Co | China Mobile vs. Cultural Investment Holdings |
| Ming Yang vs. Changchun UP Optotech | Ming Yang vs. HUAQIN TECHNOLOGY LTD | Ming Yang vs. HanS Laser Tech | Ming Yang vs. Linewell Software Co |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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