Correlation Between Ming Yang and Xiamen East
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ming Yang Smart and Xiamen East Asia, you can compare the effects of market volatilities on Ming Yang and Xiamen East 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 Xiamen East. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Xiamen East.
Diversification Opportunities for Ming Yang and Xiamen East
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ming and Xiamen is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Xiamen East Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen East Asia 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 Xiamen East. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen East Asia has no effect on the direction of Ming Yang i.e., Ming Yang and Xiamen East go up and down completely randomly.
Pair Corralation between Ming Yang and Xiamen East
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the Xiamen East. But the stock apears to be less risky and, when comparing its historical volatility, Ming Yang Smart is 1.14 times less risky than Xiamen East. The stock trades about -0.05 of its potential returns per unit of risk. The Xiamen East Asia is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 997.00 in Xiamen East Asia on August 28, 2024 and sell it today you would earn a total of 76.00 from holding Xiamen East Asia or generate 7.62% 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. Xiamen East Asia
Performance |
| Timeline |
| Ming Yang Smart |
| Xiamen East Asia |
Ming Yang and Xiamen East Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Xiamen East
The main advantage of trading using opposite Ming Yang and Xiamen East positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Xiamen East 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 Xiamen East will offset losses from the drop in Xiamen East's long position.| Ming Yang vs. Hubei Xingfa Chemicals | Ming Yang vs. JCHX Mining Management | Ming Yang vs. Nexchip Semiconductor Corp | Ming Yang vs. Uroica Mining Safety |
| Xiamen East vs. Jinhui Mining Co | Xiamen East vs. Zhengzhou Coal Mining | Xiamen East vs. Bus Online Co | Xiamen East vs. Xiangyang Automobile Bearing |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |