Correlation Between Sinotrans and Ming Yang
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By analyzing existing cross correlation between Sinotrans Ltd Class and Ming Yang Smart, you can compare the effects of market volatilities on Sinotrans 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 Sinotrans with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinotrans and Ming Yang.
Diversification Opportunities for Sinotrans and Ming Yang
Modest diversification
The 3 months correlation between Sinotrans and Ming is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Sinotrans Ltd Class 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 Sinotrans 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 Sinotrans Ltd Class 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 Sinotrans i.e., Sinotrans and Ming Yang go up and down completely randomly.
Pair Corralation between Sinotrans and Ming Yang
Assuming the 90 days trading horizon Sinotrans Ltd Class is expected to generate 0.9 times more return on investment than Ming Yang. However, Sinotrans Ltd Class is 1.11 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 -0.07 per unit of risk. If you would invest 390.00 in Sinotrans Ltd Class on October 15, 2024 and sell it today you would earn a total of 119.00 from holding Sinotrans Ltd Class or generate 30.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinotrans Ltd Class vs. Ming Yang Smart
Performance |
| Timeline |
| Sinotrans Class |
| Ming Yang Smart |
Sinotrans and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinotrans and Ming Yang
The main advantage of trading using opposite Sinotrans and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinotrans 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.| Sinotrans vs. Nanjing Putian Telecommunications | Sinotrans vs. Guangxi Wuzhou Communications | Sinotrans vs. China Mobile Limited | Sinotrans vs. China National Software |
| Ming Yang vs. Ye Chiu Metal | Ming Yang vs. Aluminum Corp of | Ming Yang vs. ZYF Lopsking Aluminum | Ming Yang vs. Lecron Energy Saving |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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