Correlation Between Ming Yang and Sportsoul
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By analyzing existing cross correlation between Ming Yang Smart and Sportsoul Co Ltd, you can compare the effects of market volatilities on Ming Yang and Sportsoul 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 Sportsoul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Sportsoul.
Diversification Opportunities for Ming Yang and Sportsoul
Very poor diversification
The 3 months correlation between Ming and Sportsoul is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Sportsoul Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sportsoul 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 Sportsoul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sportsoul has no effect on the direction of Ming Yang i.e., Ming Yang and Sportsoul go up and down completely randomly.
Pair Corralation between Ming Yang and Sportsoul
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the Sportsoul. But the stock apears to be less risky and, when comparing its historical volatility, Ming Yang Smart is 1.28 times less risky than Sportsoul. The stock trades about -0.21 of its potential returns per unit of risk. The Sportsoul Co Ltd is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,066 in Sportsoul Co Ltd on November 4, 2024 and sell it today you would earn a total of 89.00 from holding Sportsoul Co Ltd or generate 8.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. Sportsoul Co Ltd
Performance |
| Timeline |
| Ming Yang Smart |
| Sportsoul |
Ming Yang and Sportsoul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Sportsoul
The main advantage of trading using opposite Ming Yang and Sportsoul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Sportsoul 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 Sportsoul will offset losses from the drop in Sportsoul's long position.| Ming Yang vs. Guangzhou KDT Machinery | Ming Yang vs. Longjian Road Bridge | Ming Yang vs. Tjk Machinery Tianjin | Ming Yang vs. Shenzhen Zhongzhuang Construction |
| Sportsoul vs. Guangzhou KingTeller Technology | Sportsoul vs. Zhejiang Construction Investment | Sportsoul vs. Olympic Circuit Technology | Sportsoul vs. Jiangsu Financial Leasing |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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