Correlation Between Ming Yang and Xinjiang Baodi
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By analyzing existing cross correlation between Ming Yang Smart and Xinjiang Baodi Mining, you can compare the effects of market volatilities on Ming Yang and Xinjiang Baodi 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 Xinjiang Baodi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Xinjiang Baodi.
Diversification Opportunities for Ming Yang and Xinjiang Baodi
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ming and Xinjiang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Xinjiang Baodi Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Baodi Mining 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 Xinjiang Baodi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Baodi Mining has no effect on the direction of Ming Yang i.e., Ming Yang and Xinjiang Baodi go up and down completely randomly.
Pair Corralation between Ming Yang and Xinjiang Baodi
Assuming the 90 days trading horizon Ming Yang Smart is expected to generate 1.23 times more return on investment than Xinjiang Baodi. However, Ming Yang is 1.23 times more volatile than Xinjiang Baodi Mining. It trades about 0.27 of its potential returns per unit of risk. Xinjiang Baodi Mining is currently generating about 0.09 per unit of risk. If you would invest 1,194 in Ming Yang Smart on September 2, 2024 and sell it today you would earn a total of 226.00 from holding Ming Yang Smart or generate 18.93% 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. Xinjiang Baodi Mining
Performance |
| Timeline |
| Ming Yang Smart |
| Xinjiang Baodi Mining |
Ming Yang and Xinjiang Baodi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Xinjiang Baodi
The main advantage of trading using opposite Ming Yang and Xinjiang Baodi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Xinjiang Baodi 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 Xinjiang Baodi will offset losses from the drop in Xinjiang Baodi's long position.| Ming Yang vs. Jonjee Hi tech Industrial | Ming Yang vs. Central Plains Environment | Ming Yang vs. Shenzhen MYS Environmental | Ming Yang vs. Sichuan Yahua Industrial |
| Xinjiang Baodi vs. Zijin Mining Group | Xinjiang Baodi vs. Wanhua Chemical Group | Xinjiang Baodi vs. Baoshan Iron Steel | Xinjiang Baodi vs. Shandong Gold Mining |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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