Correlation Between Ming Yang and Shandong Ruifeng
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By analyzing existing cross correlation between Ming Yang Smart and Shandong Ruifeng Chemical, you can compare the effects of market volatilities on Ming Yang and Shandong Ruifeng 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 Shandong Ruifeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Shandong Ruifeng.
Diversification Opportunities for Ming Yang and Shandong Ruifeng
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ming and Shandong is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Shandong Ruifeng Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Ruifeng 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 Shandong Ruifeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Ruifeng Chemical has no effect on the direction of Ming Yang i.e., Ming Yang and Shandong Ruifeng go up and down completely randomly.
Pair Corralation between Ming Yang and Shandong Ruifeng
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the Shandong Ruifeng. In addition to that, Ming Yang is 1.18 times more volatile than Shandong Ruifeng Chemical. It trades about -0.31 of its total potential returns per unit of risk. Shandong Ruifeng Chemical is currently generating about -0.05 per unit of volatility. If you would invest 943.00 in Shandong Ruifeng Chemical on November 3, 2024 and sell it today you would lose (22.00) from holding Shandong Ruifeng Chemical or give up 2.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. Shandong Ruifeng Chemical
Performance |
| Timeline |
| Ming Yang Smart |
| Shandong Ruifeng Chemical |
Ming Yang and Shandong Ruifeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Shandong Ruifeng
The main advantage of trading using opposite Ming Yang and Shandong Ruifeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Shandong Ruifeng 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 Shandong Ruifeng will offset losses from the drop in Shandong Ruifeng'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 |
| Shandong Ruifeng vs. Zhejiang Qianjiang Motorcycle | Shandong Ruifeng vs. Cansino Biologics | Shandong Ruifeng vs. Dongfeng Automobile Co | Shandong Ruifeng vs. Chongqing Shunbo Aluminum |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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