Correlation Between Ming Yang and Beijing Shanghai
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By analyzing existing cross correlation between Ming Yang Smart and Beijing Shanghai High Speed, you can compare the effects of market volatilities on Ming Yang and Beijing Shanghai 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 Beijing Shanghai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Beijing Shanghai.
Diversification Opportunities for Ming Yang and Beijing Shanghai
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ming and Beijing is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Beijing Shanghai High Speed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Shanghai High 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 Beijing Shanghai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Shanghai High has no effect on the direction of Ming Yang i.e., Ming Yang and Beijing Shanghai go up and down completely randomly.
Pair Corralation between Ming Yang and Beijing Shanghai
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the Beijing Shanghai. In addition to that, Ming Yang is 1.79 times more volatile than Beijing Shanghai High Speed. It trades about -0.03 of its total potential returns per unit of risk. Beijing Shanghai High Speed is currently generating about 0.05 per unit of volatility. If you would invest 485.00 in Beijing Shanghai High Speed on September 13, 2024 and sell it today you would earn a total of 137.00 from holding Beijing Shanghai High Speed or generate 28.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. Beijing Shanghai High Speed
Performance |
| Timeline |
| Ming Yang Smart |
| Beijing Shanghai High |
Ming Yang and Beijing Shanghai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Beijing Shanghai
The main advantage of trading using opposite Ming Yang and Beijing Shanghai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Beijing Shanghai 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 Beijing Shanghai will offset losses from the drop in Beijing Shanghai's long position.| Ming Yang vs. Shenyang Huitian Thermal | Ming Yang vs. Beijing HuaYuanYiTong Thermal | Ming Yang vs. Zhejiang Yayi Metal | Ming Yang vs. Luyin Investment Group |
| Beijing Shanghai vs. Ming Yang Smart | Beijing Shanghai vs. 159681 | Beijing Shanghai vs. 159005 | Beijing Shanghai vs. Loctek Ergonomic Technology |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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