Correlation Between Ming Yang and Shenzhen Shenbao
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By analyzing existing cross correlation between Ming Yang Smart and Shenzhen Shenbao Industrial, you can compare the effects of market volatilities on Ming Yang and Shenzhen Shenbao 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 Ming Yang with a short position of Shenzhen Shenbao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Shenzhen Shenbao.
Diversification Opportunities for Ming Yang and Shenzhen Shenbao
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ming and Shenzhen is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Shenzhen Shenbao Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Shenbao Ind and Ming Yang 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 Ming Yang Smart are associated (or correlated) with Shenzhen Shenbao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Shenbao Ind has no effect on the direction of Ming Yang i.e., Ming Yang and Shenzhen Shenbao go up and down completely randomly.
Pair Corralation between Ming Yang and Shenzhen Shenbao
Assuming the 90 days trading horizon Ming Yang Smart is expected to generate 1.84 times more return on investment than Shenzhen Shenbao. However, Ming Yang is 1.84 times more volatile than Shenzhen Shenbao Industrial. It trades about 0.27 of its potential returns per unit of risk. Shenzhen Shenbao Industrial is currently generating about 0.21 per unit of risk. If you would invest 1,194 in Ming Yang Smart on September 2, 2024 and sell it today you would earn a total of 226.00 from holding Ming Yang Smart or generate 18.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. Shenzhen Shenbao Industrial
Performance |
| Timeline |
| Ming Yang Smart |
| Shenzhen Shenbao Ind |
Ming Yang and Shenzhen Shenbao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Shenzhen Shenbao
The main advantage of trading using opposite Ming Yang and Shenzhen Shenbao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Shenzhen Shenbao 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 Shenzhen Shenbao will offset losses from the drop in Shenzhen Shenbao's long position.| Ming Yang vs. Jonjee Hi tech Industrial | Ming Yang vs. Central Plains Environment | Ming Yang vs. Shenzhen MYS Environmental | Ming Yang vs. Sichuan Yahua Industrial |
| Shenzhen Shenbao vs. Ming Yang Smart | Shenzhen Shenbao vs. 159681 | Shenzhen Shenbao vs. 159005 | Shenzhen Shenbao vs. Loctek Ergonomic 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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