Correlation Between Ming Yang and Shenzhen Bingchuan
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By analyzing existing cross correlation between Ming Yang Smart and Shenzhen Bingchuan Network, you can compare the effects of market volatilities on Ming Yang and Shenzhen Bingchuan 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 Bingchuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Shenzhen Bingchuan.
Diversification Opportunities for Ming Yang and Shenzhen Bingchuan
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ming and Shenzhen is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Shenzhen Bingchuan Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Bingchuan 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 Bingchuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Bingchuan has no effect on the direction of Ming Yang i.e., Ming Yang and Shenzhen Bingchuan go up and down completely randomly.
Pair Corralation between Ming Yang and Shenzhen Bingchuan
Assuming the 90 days trading horizon Ming Yang is expected to generate 6.26 times less return on investment than Shenzhen Bingchuan. But when comparing it to its historical volatility, Ming Yang Smart is 1.96 times less risky than Shenzhen Bingchuan. It trades about 0.09 of its potential returns per unit of risk. Shenzhen Bingchuan Network is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 1,923 in Shenzhen Bingchuan Network on August 29, 2024 and sell it today you would earn a total of 564.00 from holding Shenzhen Bingchuan Network or generate 29.33% 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. Shenzhen Bingchuan Network
Performance |
| Timeline |
| Ming Yang Smart |
| Shenzhen Bingchuan |
Ming Yang and Shenzhen Bingchuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Shenzhen Bingchuan
The main advantage of trading using opposite Ming Yang and Shenzhen Bingchuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Shenzhen Bingchuan 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 Bingchuan will offset losses from the drop in Shenzhen Bingchuan's long position.| Ming Yang vs. Northern United Publishing | Ming Yang vs. Southern PublishingMedia Co | Ming Yang vs. Guangzhou Haige Communications | Ming Yang vs. China Publishing Media |
| Shenzhen Bingchuan vs. GreenTech Environmental Co | Shenzhen Bingchuan vs. Ningbo MedicalSystem Biotechnology | Shenzhen Bingchuan vs. Hang Xiao Steel | Shenzhen Bingchuan vs. Guangdong Liantai Environmental |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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