Correlation Between Ming Yang and China Resources
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By analyzing existing cross correlation between Ming Yang Smart and China Resources Boya, you can compare the effects of market volatilities on Ming Yang and China Resources 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 China Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and China Resources.
Diversification Opportunities for Ming Yang and China Resources
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ming and China is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and China Resources Boya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Resources Boya 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 China Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Resources Boya has no effect on the direction of Ming Yang i.e., Ming Yang and China Resources go up and down completely randomly.
Pair Corralation between Ming Yang and China Resources
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the China Resources. In addition to that, Ming Yang is 2.54 times more volatile than China Resources Boya. It trades about -0.36 of its total potential returns per unit of risk. China Resources Boya is currently generating about -0.38 per unit of volatility. If you would invest 3,098 in China Resources Boya on October 25, 2024 and sell it today you would lose (228.00) from holding China Resources Boya or give up 7.36% 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. China Resources Boya
Performance |
| Timeline |
| Ming Yang Smart |
| China Resources Boya |
Ming Yang and China Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and China Resources
The main advantage of trading using opposite Ming Yang and China Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, China Resources 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 China Resources will offset losses from the drop in China Resources' long position.| Ming Yang vs. Shanghai Broadband Technology | Ming Yang vs. Quectel Wireless Solutions | Ming Yang vs. Shaanxi Broadcast TV | Ming Yang vs. Sichuan Fulin Transportation |
| China Resources vs. Shenzhen Centralcon Investment | China Resources vs. Luyin Investment Group | China Resources vs. Sportsoul Co Ltd | China Resources vs. Kunwu Jiuding Investment |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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