Correlation Between Ming Yang and Ningxia Xiaoming
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By analyzing existing cross correlation between Ming Yang Smart and Ningxia Xiaoming Agriculture, you can compare the effects of market volatilities on Ming Yang and Ningxia Xiaoming 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 Ningxia Xiaoming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Ningxia Xiaoming.
Diversification Opportunities for Ming Yang and Ningxia Xiaoming
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ming and Ningxia is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Ningxia Xiaoming Agriculture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningxia Xiaoming Agr 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 Ningxia Xiaoming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningxia Xiaoming Agr has no effect on the direction of Ming Yang i.e., Ming Yang and Ningxia Xiaoming go up and down completely randomly.
Pair Corralation between Ming Yang and Ningxia Xiaoming
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the Ningxia Xiaoming. But the stock apears to be less risky and, when comparing its historical volatility, Ming Yang Smart is 1.39 times less risky than Ningxia Xiaoming. The stock trades about -0.03 of its potential returns per unit of risk. The Ningxia Xiaoming Agriculture is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,780 in Ningxia Xiaoming Agriculture on September 13, 2024 and sell it today you would lose (393.00) from holding Ningxia Xiaoming Agriculture or give up 22.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. Ningxia Xiaoming Agriculture
Performance |
| Timeline |
| Ming Yang Smart |
| Ningxia Xiaoming Agr |
Ming Yang and Ningxia Xiaoming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Ningxia Xiaoming
The main advantage of trading using opposite Ming Yang and Ningxia Xiaoming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Ningxia Xiaoming 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 Ningxia Xiaoming will offset losses from the drop in Ningxia Xiaoming's long position.| Ming Yang vs. Shenyang Huitian Thermal | Ming Yang vs. Beijing HuaYuanYiTong Thermal | Ming Yang vs. Zhejiang Yayi Metal | Ming Yang vs. Luyin Investment Group |
| Ningxia Xiaoming vs. New China Life | Ningxia Xiaoming vs. Ming Yang Smart | Ningxia Xiaoming vs. 159681 | Ningxia Xiaoming vs. 159005 |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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