Correlation Between Ming Yang and Xilong Chemical
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By analyzing existing cross correlation between Ming Yang Smart and Xilong Chemical Co, you can compare the effects of market volatilities on Ming Yang and Xilong Chemical 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 Xilong Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Xilong Chemical.
Diversification Opportunities for Ming Yang and Xilong Chemical
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ming and Xilong is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Xilong Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xilong Chemical 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 Xilong Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xilong Chemical has no effect on the direction of Ming Yang i.e., Ming Yang and Xilong Chemical go up and down completely randomly.
Pair Corralation between Ming Yang and Xilong Chemical
Assuming the 90 days trading horizon Ming Yang Smart is expected to generate 0.75 times more return on investment than Xilong Chemical. However, Ming Yang Smart is 1.33 times less risky than Xilong Chemical. It trades about 0.26 of its potential returns per unit of risk. Xilong Chemical Co is currently generating about 0.14 per unit of risk. If you would invest 1,204 in Ming Yang Smart on September 1, 2024 and sell it today you would earn a total of 216.00 from holding Ming Yang Smart or generate 17.94% 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. Xilong Chemical Co
Performance |
| Timeline |
| Ming Yang Smart |
| Xilong Chemical |
Ming Yang and Xilong Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Xilong Chemical
The main advantage of trading using opposite Ming Yang and Xilong Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Xilong Chemical 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 Xilong Chemical will offset losses from the drop in Xilong Chemical's long position.| Ming Yang vs. Xilong Chemical Co | Ming Yang vs. Wuxi Chemical Equipment | Ming Yang vs. Shenyang Chemical Industry | Ming Yang vs. Tianshui Huatian Technology |
| Xilong Chemical vs. Tonghua Grape Wine | Xilong Chemical vs. Focus Media Information | Xilong Chemical vs. Anhui Gujing Distillery | Xilong Chemical vs. Eastroc Beverage Group |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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