Correlation Between Ming Yang and Shandong Sanyuan
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By analyzing existing cross correlation between Ming Yang Smart and Shandong Sanyuan Biotechnology, you can compare the effects of market volatilities on Ming Yang and Shandong Sanyuan 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 Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Shandong Sanyuan.
Diversification Opportunities for Ming Yang and Shandong Sanyuan
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ming and Shandong is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Shandong Sanyuan Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sanyuan Bio 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 Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sanyuan Bio has no effect on the direction of Ming Yang i.e., Ming Yang and Shandong Sanyuan go up and down completely randomly.
Pair Corralation between Ming Yang and Shandong Sanyuan
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the Shandong Sanyuan. But the stock apears to be less risky and, when comparing its historical volatility, Ming Yang Smart is 1.03 times less risky than Shandong Sanyuan. The stock trades about -0.14 of its potential returns per unit of risk. The Shandong Sanyuan Biotechnology is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,723 in Shandong Sanyuan Biotechnology on September 28, 2024 and sell it today you would earn a total of 68.00 from holding Shandong Sanyuan Biotechnology or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. Shandong Sanyuan Biotechnology
Performance |
| Timeline |
| Ming Yang Smart |
| Shandong Sanyuan Bio |
Ming Yang and Shandong Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Shandong Sanyuan
The main advantage of trading using opposite Ming Yang and Shandong Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Shandong Sanyuan 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 Sanyuan will offset losses from the drop in Shandong Sanyuan's long position.| Ming Yang vs. Cicc Fund Management | Ming Yang vs. UE Furniture Co | Ming Yang vs. Xiamen Goldenhome Co | Ming Yang vs. DO Home Collection |
| Shandong Sanyuan vs. Ming Yang Smart | Shandong Sanyuan vs. 159681 | Shandong Sanyuan vs. 159005 | Shandong Sanyuan vs. Loctek Ergonomic Technology |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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