Correlation Between Ming Yang and New China
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By analyzing existing cross correlation between Ming Yang Smart and New China Life, you can compare the effects of market volatilities on Ming Yang and New China 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 New China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and New China.
Diversification Opportunities for Ming Yang and New China
Almost no diversification
The 3 months correlation between Ming and New is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and New China Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New China Life 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 New China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New China Life has no effect on the direction of Ming Yang i.e., Ming Yang and New China go up and down completely randomly.
Pair Corralation between Ming Yang and New China
Assuming the 90 days trading horizon Ming Yang Smart is expected to generate 0.91 times more return on investment than New China. However, Ming Yang Smart is 1.1 times less risky than New China. It trades about 0.2 of its potential returns per unit of risk. New China Life is currently generating about -0.03 per unit of risk. If you would invest 1,204 in Ming Yang Smart on August 29, 2024 and sell it today you would earn a total of 173.00 from holding Ming Yang Smart or generate 14.37% 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. New China Life
Performance |
| Timeline |
| Ming Yang Smart |
| New China Life |
Ming Yang and New China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and New China
The main advantage of trading using opposite Ming Yang and New China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, New China 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 New China will offset losses from the drop in New China's long position.| Ming Yang vs. Kingsignal Technology Co | Ming Yang vs. Eastern Air Logistics | Ming Yang vs. Harbin Air Conditioning | Ming Yang vs. Oppein Home Group |
| New China vs. Eastroc Beverage Group | New China vs. Hangzhou Coco Healthcare | New China vs. Dazhong Transportation Group | New China vs. CICC Fund Management |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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