Correlation Between Ming Yang and ZJBC Information
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By analyzing existing cross correlation between Ming Yang Smart and ZJBC Information Technology, you can compare the effects of market volatilities on Ming Yang and ZJBC Information 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 ZJBC Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and ZJBC Information.
Diversification Opportunities for Ming Yang and ZJBC Information
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ming and ZJBC is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and ZJBC Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZJBC Information Tec 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 ZJBC Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZJBC Information Tec has no effect on the direction of Ming Yang i.e., Ming Yang and ZJBC Information go up and down completely randomly.
Pair Corralation between Ming Yang and ZJBC Information
Assuming the 90 days trading horizon Ming Yang is expected to generate 1.12 times less return on investment than ZJBC Information. In addition to that, Ming Yang is 1.09 times more volatile than ZJBC Information Technology. It trades about 0.24 of its total potential returns per unit of risk. ZJBC Information Technology is currently generating about 0.29 per unit of volatility. If you would invest 193.00 in ZJBC Information Technology on September 13, 2024 and sell it today you would earn a total of 78.00 from holding ZJBC Information Technology or generate 40.41% 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. ZJBC Information Technology
Performance |
| Timeline |
| Ming Yang Smart |
| ZJBC Information Tec |
Ming Yang and ZJBC Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and ZJBC Information
The main advantage of trading using opposite Ming Yang and ZJBC Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, ZJBC Information 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 ZJBC Information will offset losses from the drop in ZJBC Information's long position.| Ming Yang vs. Shenyang Huitian Thermal | Ming Yang vs. Beijing HuaYuanYiTong Thermal | Ming Yang vs. Zhejiang Yayi Metal | Ming Yang vs. Luyin Investment Group |
| ZJBC Information vs. Ming Yang Smart | ZJBC Information vs. 159681 | ZJBC Information vs. 159005 | ZJBC Information 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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