Correlation Between Ming Yang and Sinomach General
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By analyzing existing cross correlation between Ming Yang Smart and Sinomach General Machinery, you can compare the effects of market volatilities on Ming Yang and Sinomach General 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 Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Sinomach General.
Diversification Opportunities for Ming Yang and Sinomach General
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ming and Sinomach is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Sinomach General Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach General Mac 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 Sinomach General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach General Mac has no effect on the direction of Ming Yang i.e., Ming Yang and Sinomach General go up and down completely randomly.
Pair Corralation between Ming Yang and Sinomach General
Assuming the 90 days trading horizon Ming Yang is expected to generate 2.15 times less return on investment than Sinomach General. But when comparing it to its historical volatility, Ming Yang Smart is 1.16 times less risky than Sinomach General. It trades about 0.04 of its potential returns per unit of risk. Sinomach General Machinery is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,219 in Sinomach General Machinery on October 26, 2024 and sell it today you would earn a total of 298.00 from holding Sinomach General Machinery or generate 24.45% 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. Sinomach General Machinery
Performance |
| Timeline |
| Ming Yang Smart |
| Sinomach General Mac |
Ming Yang and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Sinomach General
The main advantage of trading using opposite Ming Yang and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Sinomach General 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 Sinomach General will offset losses from the drop in Sinomach General's long position.| Ming Yang vs. Zhonghang Electronic Measuring | Ming Yang vs. Sichuan Yahua Industrial | Ming Yang vs. Semiconductor Manufacturing Electronics | Ming Yang vs. Guangdong Ellington Electronics |
| Sinomach General vs. Ming Yang Smart | Sinomach General vs. 159681 | Sinomach General vs. 159005 | Sinomach General 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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