Correlation Between Ming Yang and Shenzhen Inovance
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By analyzing existing cross correlation between Ming Yang Smart and Shenzhen Inovance Tech, you can compare the effects of market volatilities on Ming Yang and Shenzhen Inovance 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 Shenzhen Inovance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Shenzhen Inovance.
Diversification Opportunities for Ming Yang and Shenzhen Inovance
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ming and Shenzhen is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Shenzhen Inovance Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Inovance Tech 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 Shenzhen Inovance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Inovance Tech has no effect on the direction of Ming Yang i.e., Ming Yang and Shenzhen Inovance go up and down completely randomly.
Pair Corralation between Ming Yang and Shenzhen Inovance
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the Shenzhen Inovance. In addition to that, Ming Yang is 1.36 times more volatile than Shenzhen Inovance Tech. It trades about -0.14 of its total potential returns per unit of risk. Shenzhen Inovance Tech is currently generating about 0.06 per unit of volatility. If you would invest 5,902 in Shenzhen Inovance Tech on September 28, 2024 and sell it today you would earn a total of 106.00 from holding Shenzhen Inovance Tech or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. Shenzhen Inovance Tech
Performance |
| Timeline |
| Ming Yang Smart |
| Shenzhen Inovance Tech |
Ming Yang and Shenzhen Inovance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Shenzhen Inovance
The main advantage of trading using opposite Ming Yang and Shenzhen Inovance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Shenzhen Inovance 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 Shenzhen Inovance will offset losses from the drop in Shenzhen Inovance's long position.| Ming Yang vs. Cicc Fund Management | Ming Yang vs. UE Furniture Co | Ming Yang vs. Xiamen Goldenhome Co | Ming Yang vs. DO Home Collection |
| Shenzhen Inovance vs. Innovative Medical Management | Shenzhen Inovance vs. Gifore Agricultural Machinery | Shenzhen Inovance vs. JCHX Mining Management | Shenzhen Inovance vs. Long Yuan Construction |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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