Correlation Between Ming Yang and Shanghai Electric
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By analyzing existing cross correlation between Ming Yang Smart and Shanghai Electric Group, you can compare the effects of market volatilities on Ming Yang and Shanghai Electric 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 Shanghai Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Shanghai Electric.
Diversification Opportunities for Ming Yang and Shanghai Electric
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ming and Shanghai is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Shanghai Electric Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Electric 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 Shanghai Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Electric has no effect on the direction of Ming Yang i.e., Ming Yang and Shanghai Electric go up and down completely randomly.
Pair Corralation between Ming Yang and Shanghai Electric
Assuming the 90 days trading horizon Ming Yang is expected to generate 3.96 times less return on investment than Shanghai Electric. But when comparing it to its historical volatility, Ming Yang Smart is 1.15 times less risky than Shanghai Electric. It trades about 0.03 of its potential returns per unit of risk. Shanghai Electric Group is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 424.00 in Shanghai Electric Group on September 3, 2024 and sell it today you would earn a total of 511.00 from holding Shanghai Electric Group or generate 120.52% 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. Shanghai Electric Group
Performance |
| Timeline |
| Ming Yang Smart |
| Shanghai Electric |
Ming Yang and Shanghai Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Shanghai Electric
The main advantage of trading using opposite Ming Yang and Shanghai Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Shanghai Electric 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 Shanghai Electric will offset losses from the drop in Shanghai Electric'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 |
| Shanghai Electric vs. CITIC Guoan Information | Shanghai Electric vs. Hangzhou Gisway Information | Shanghai Electric vs. Huasi Agricultural Development | Shanghai Electric vs. AVCON Information Tech |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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