Correlation Between Bank of Communications and Ming Yang
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By analyzing existing cross correlation between Bank of Communications and Ming Yang Smart, you can compare the effects of market volatilities on Bank of Communications 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 Bank of Communications with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and Ming Yang.
Diversification Opportunities for Bank of Communications and Ming Yang
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Ming is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications 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 Bank of Communications 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 Bank of Communications 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 Bank of Communications i.e., Bank of Communications and Ming Yang go up and down completely randomly.
Pair Corralation between Bank of Communications and Ming Yang
Assuming the 90 days trading horizon Bank of Communications is expected to generate 1.07 times less return on investment than Ming Yang. But when comparing it to its historical volatility, Bank of Communications is 2.48 times less risky than Ming Yang. It trades about 0.2 of its potential returns per unit of risk. Ming Yang Smart is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,338 in Ming Yang Smart on September 12, 2024 and sell it today you would earn a total of 68.00 from holding Ming Yang Smart or generate 5.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Communications vs. Ming Yang Smart
Performance |
| Timeline |
| Bank of Communications |
| Ming Yang Smart |
Bank of Communications and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and Ming Yang
The main advantage of trading using opposite Bank of Communications and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications 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.| Bank of Communications vs. China Petroleum Chemical | Bank of Communications vs. PetroChina Co Ltd | Bank of Communications vs. China Mobile Limited | Bank of Communications vs. Industrial and Commercial |
| Ming Yang vs. Jiangyin Jianghua Microelectronics | Ming Yang vs. HaiXin Foods Co | Ming Yang vs. Fujian Anjoy Foods | Ming Yang vs. Success Electronics |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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