Correlation Between Ming Yang and China Aluminum
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By analyzing existing cross correlation between Ming Yang Smart and China Aluminum International, you can compare the effects of market volatilities on Ming Yang and China Aluminum 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 Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and China Aluminum.
Diversification Opportunities for Ming Yang and China Aluminum
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ming and China is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and China Aluminum International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Aluminum Inter 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 Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Aluminum Inter has no effect on the direction of Ming Yang i.e., Ming Yang and China Aluminum go up and down completely randomly.
Pair Corralation between Ming Yang and China Aluminum
Assuming the 90 days trading horizon Ming Yang Smart is expected to generate 1.91 times more return on investment than China Aluminum. However, Ming Yang is 1.91 times more volatile than China Aluminum International. It trades about 0.23 of its potential returns per unit of risk. China Aluminum International is currently generating about -0.09 per unit of risk. If you would invest 1,191 in Ming Yang Smart on August 31, 2024 and sell it today you would earn a total of 191.00 from holding Ming Yang Smart or generate 16.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. China Aluminum International
Performance |
| Timeline |
| Ming Yang Smart |
| China Aluminum Inter |
Ming Yang and China Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and China Aluminum
The main advantage of trading using opposite Ming Yang and China Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, China Aluminum 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 Aluminum will offset losses from the drop in China Aluminum's long position.| Ming Yang vs. Xinjiang Baodi Mining | Ming Yang vs. Suzhou Weizhixiang Food | Ming Yang vs. Guilin Seamild Foods | Ming Yang vs. Chengtun Mining Group |
| China Aluminum vs. Cultural Investment Holdings | China Aluminum vs. Gome Telecom Equipment | China Aluminum vs. Bus Online Co | China Aluminum vs. Holitech Technology 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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