Correlation Between Ming Yang and Changjiang Jinggong
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By analyzing existing cross correlation between Ming Yang Smart and Changjiang Jinggong Steel, you can compare the effects of market volatilities on Ming Yang and Changjiang Jinggong 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 Changjiang Jinggong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Changjiang Jinggong.
Diversification Opportunities for Ming Yang and Changjiang Jinggong
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ming and Changjiang is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Changjiang Jinggong Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Jinggong Steel 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 Changjiang Jinggong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Jinggong Steel has no effect on the direction of Ming Yang i.e., Ming Yang and Changjiang Jinggong go up and down completely randomly.
Pair Corralation between Ming Yang and Changjiang Jinggong
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the Changjiang Jinggong. In addition to that, Ming Yang is 1.87 times more volatile than Changjiang Jinggong Steel. It trades about -0.31 of its total potential returns per unit of risk. Changjiang Jinggong Steel is currently generating about -0.04 per unit of volatility. If you would invest 297.00 in Changjiang Jinggong Steel on November 2, 2024 and sell it today you would lose (3.00) from holding Changjiang Jinggong Steel or give up 1.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. Changjiang Jinggong Steel
Performance |
| Timeline |
| Ming Yang Smart |
| Changjiang Jinggong Steel |
Ming Yang and Changjiang Jinggong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Changjiang Jinggong
The main advantage of trading using opposite Ming Yang and Changjiang Jinggong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Changjiang Jinggong 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 Changjiang Jinggong will offset losses from the drop in Changjiang Jinggong's long position.| Ming Yang vs. Huaibei Mining Holdings | Ming Yang vs. Holitech Technology Co | Ming Yang vs. Tibet Huayu Mining | Ming Yang vs. Jinhui Mining Co |
| Changjiang Jinggong vs. Lotus Health Group | Changjiang Jinggong vs. Chahua Modern Housewares | Changjiang Jinggong vs. XinJiang GuoTong Pipeline | Changjiang Jinggong vs. Dezhan HealthCare Co |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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