Correlation Between Ming Yang and China Southern
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By analyzing existing cross correlation between Ming Yang Smart and China Southern SSE, you can compare the effects of market volatilities on Ming Yang and China Southern 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 Southern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and China Southern.
Diversification Opportunities for Ming Yang and China Southern
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ming and China is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and China Southern SSE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Southern SSE 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 Southern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Southern SSE has no effect on the direction of Ming Yang i.e., Ming Yang and China Southern go up and down completely randomly.
Pair Corralation between Ming Yang and China Southern
Assuming the 90 days trading horizon Ming Yang Smart is expected to generate 2.36 times more return on investment than China Southern. However, Ming Yang is 2.36 times more volatile than China Southern SSE. It trades about 0.14 of its potential returns per unit of risk. China Southern SSE is currently generating about -0.03 per unit of risk. If you would invest 1,326 in Ming Yang Smart on September 13, 2024 and sell it today you would earn a total of 123.00 from holding Ming Yang Smart or generate 9.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. China Southern SSE
Performance |
| Timeline |
| Ming Yang Smart |
| China Southern SSE |
Ming Yang and China Southern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and China Southern
The main advantage of trading using opposite Ming Yang and China Southern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, China Southern 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 Southern will offset losses from the drop in China Southern's long position.| Ming Yang vs. Xilinmen Furniture Co | Ming Yang vs. Jiangxi Hengda Hi Tech | Ming Yang vs. Wintao Communications Co | Ming Yang vs. Zhangjiagang Freetrade Science |
| China Southern vs. China Southern CSI | China Southern vs. China Universal CS | China Southern vs. China Southern CSI | China Southern vs. China Universal CSI |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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