Correlation Between Ming Yang and Nanhua Bio
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By analyzing existing cross correlation between Ming Yang Smart and Nanhua Bio Medicine, you can compare the effects of market volatilities on Ming Yang and Nanhua Bio 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 Nanhua Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Nanhua Bio.
Diversification Opportunities for Ming Yang and Nanhua Bio
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ming and Nanhua is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Nanhua Bio Medicine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanhua Bio Medicine 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 Nanhua Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanhua Bio Medicine has no effect on the direction of Ming Yang i.e., Ming Yang and Nanhua Bio go up and down completely randomly.
Pair Corralation between Ming Yang and Nanhua Bio
Assuming the 90 days trading horizon Ming Yang Smart is expected to generate 1.13 times more return on investment than Nanhua Bio. However, Ming Yang is 1.13 times more volatile than Nanhua Bio Medicine. It trades about 0.09 of its potential returns per unit of risk. Nanhua Bio Medicine is currently generating about -0.01 per unit of risk. 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. Nanhua Bio Medicine
Performance |
| Timeline |
| Ming Yang Smart |
| Nanhua Bio Medicine |
Ming Yang and Nanhua Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Nanhua Bio
The main advantage of trading using opposite Ming Yang and Nanhua Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Nanhua Bio 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 Nanhua Bio will offset losses from the drop in Nanhua Bio's long position.| Ming Yang vs. Jiangyin Jianghua Microelectronics | Ming Yang vs. HaiXin Foods Co | Ming Yang vs. Fujian Anjoy Foods | Ming Yang vs. Success Electronics |
| Nanhua Bio vs. Kweichow Moutai Co | Nanhua Bio vs. Shenzhen Mindray Bio Medical | Nanhua Bio vs. G bits Network Technology | Nanhua Bio vs. Beijing Roborock 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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