Correlation Between Ming Yang and Bank of China
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By analyzing existing cross correlation between Ming Yang Smart and Bank of China, you can compare the effects of market volatilities on Ming Yang and Bank of 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 Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Bank of China.
Diversification Opportunities for Ming Yang and Bank of China
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ming and Bank is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Bank of China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of China 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 Bank of China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of China has no effect on the direction of Ming Yang i.e., Ming Yang and Bank of China go up and down completely randomly.
Pair Corralation between Ming Yang and Bank of China
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the Bank of China. In addition to that, Ming Yang is 1.73 times more volatile than Bank of China. It trades about -0.04 of its total potential returns per unit of risk. Bank of China is currently generating about 0.09 per unit of volatility. If you would invest 295.00 in Bank of China on September 2, 2024 and sell it today you would earn a total of 206.00 from holding Bank of China or generate 69.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. Bank of China
Performance |
| Timeline |
| Ming Yang Smart |
| Bank of China |
Ming Yang and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Bank of China
The main advantage of trading using opposite Ming Yang and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Bank of 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 Bank of China will offset losses from the drop in Bank of China'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 |
| Bank of China vs. Marssenger Kitchenware Co | Bank of China vs. Thinkingdom Media Group | Bank of China vs. Hengdian Entertainment Co | Bank of China vs. Lander Sports Development |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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