Correlation Between Ming Yang and China Marine
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By analyzing existing cross correlation between Ming Yang Smart and China Marine Information, you can compare the effects of market volatilities on Ming Yang and China Marine 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 Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and China Marine.
Diversification Opportunities for Ming Yang and China Marine
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ming and China is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and China Marine Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Marine Information 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 Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Marine Information has no effect on the direction of Ming Yang i.e., Ming Yang and China Marine go up and down completely randomly.
Pair Corralation between Ming Yang and China Marine
Assuming the 90 days trading horizon Ming Yang Smart is expected to generate 0.92 times more return on investment than China Marine. However, Ming Yang Smart is 1.08 times less risky than China Marine. It trades about 0.16 of its potential returns per unit of risk. China Marine Information is currently generating about 0.02 per unit of risk. If you would invest 1,164 in Ming Yang Smart on September 3, 2024 and sell it today you would earn a total of 256.00 from holding Ming Yang Smart or generate 21.99% 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 Marine Information
Performance |
| Timeline |
| Ming Yang Smart |
| China Marine Information |
Ming Yang and China Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and China Marine
The main advantage of trading using opposite Ming Yang and China Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, China Marine 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 Marine will offset losses from the drop in China Marine's long position.| Ming Yang vs. Shenzhen Kexin Communication | Ming Yang vs. Wintao Communications Co | Ming Yang vs. China Sports Industry | Ming Yang vs. State Grid InformationCommunication |
| China Marine vs. Pengxin International Mining | China Marine vs. Zhejiang Yayi Metal | China Marine vs. Anhui Transport Consulting | China Marine vs. Western Metal Materials |
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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