Correlation Between Ming Yang and Xinjiang Communications
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By analyzing existing cross correlation between Ming Yang Smart and Xinjiang Communications Construction, you can compare the effects of market volatilities on Ming Yang and Xinjiang Communications 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 Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Xinjiang Communications.
Diversification Opportunities for Ming Yang and Xinjiang Communications
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ming and Xinjiang is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications 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 Xinjiang Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of Ming Yang i.e., Ming Yang and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Ming Yang and Xinjiang Communications
Assuming the 90 days trading horizon Ming Yang is expected to generate 3.56 times less return on investment than Xinjiang Communications. But when comparing it to its historical volatility, Ming Yang Smart is 1.27 times less risky than Xinjiang Communications. It trades about 0.08 of its potential returns per unit of risk. Xinjiang Communications Construction is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,070 in Xinjiang Communications Construction on December 1, 2024 and sell it today you would earn a total of 117.00 from holding Xinjiang Communications Construction or generate 10.93% 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. Xinjiang Communications Constr
Performance |
| Timeline |
| Ming Yang Smart |
| Xinjiang Communications |
Ming Yang and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Xinjiang Communications
The main advantage of trading using opposite Ming Yang and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Xinjiang Communications 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 Xinjiang Communications will offset losses from the drop in Xinjiang Communications' long position.| Ming Yang vs. Shenyang Blue Silver | Ming Yang vs. Guocheng Mining Co | Ming Yang vs. Shengda Mining Co | Ming Yang vs. Sinomach Automobile Co |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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