Correlation Between Ming Yang and Beijing Sanyuan
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By analyzing existing cross correlation between Ming Yang Smart and Beijing Sanyuan Foods, you can compare the effects of market volatilities on Ming Yang and Beijing 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 Beijing Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Beijing Sanyuan.
Diversification Opportunities for Ming Yang and Beijing Sanyuan
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ming and Beijing is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Beijing Sanyuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Sanyuan Foods 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 Beijing Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Sanyuan Foods has no effect on the direction of Ming Yang i.e., Ming Yang and Beijing Sanyuan go up and down completely randomly.
Pair Corralation between Ming Yang and Beijing Sanyuan
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the Beijing Sanyuan. In addition to that, Ming Yang is 1.41 times more volatile than Beijing Sanyuan Foods. It trades about -0.07 of its total potential returns per unit of risk. Beijing Sanyuan Foods is currently generating about -0.02 per unit of volatility. If you would invest 489.00 in Beijing Sanyuan Foods on October 15, 2024 and sell it today you would lose (94.00) from holding Beijing Sanyuan Foods or give up 19.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. Beijing Sanyuan Foods
Performance |
| Timeline |
| Ming Yang Smart |
| Beijing Sanyuan Foods |
Ming Yang and Beijing Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Beijing Sanyuan
The main advantage of trading using opposite Ming Yang and Beijing Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Beijing 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 Beijing Sanyuan will offset losses from the drop in Beijing Sanyuan's long position.| Ming Yang vs. Ye Chiu Metal | Ming Yang vs. Aluminum Corp of | Ming Yang vs. ZYF Lopsking Aluminum | Ming Yang vs. Lecron Energy Saving |
| Beijing Sanyuan vs. Beijing Mainstreets Investment | Beijing Sanyuan vs. Mengtian Home Group | Beijing Sanyuan vs. Zhongrun Resources Investment | Beijing Sanyuan vs. Zoje Resources Investment |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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