Correlation Between Ming Yang and Zhende Medical
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By analyzing existing cross correlation between Ming Yang Smart and Zhende Medical Co, you can compare the effects of market volatilities on Ming Yang and Zhende Medical 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 Zhende Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Zhende Medical.
Diversification Opportunities for Ming Yang and Zhende Medical
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ming and Zhende is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Zhende Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhende Medical 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 Zhende Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhende Medical has no effect on the direction of Ming Yang i.e., Ming Yang and Zhende Medical go up and down completely randomly.
Pair Corralation between Ming Yang and Zhende Medical
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the Zhende Medical. In addition to that, Ming Yang is 2.0 times more volatile than Zhende Medical Co. It trades about -0.3 of its total potential returns per unit of risk. Zhende Medical Co is currently generating about -0.12 per unit of volatility. If you would invest 2,217 in Zhende Medical Co on October 23, 2024 and sell it today you would lose (73.00) from holding Zhende Medical Co or give up 3.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. Zhende Medical Co
Performance |
| Timeline |
| Ming Yang Smart |
| Zhende Medical |
Ming Yang and Zhende Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Zhende Medical
The main advantage of trading using opposite Ming Yang and Zhende Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Zhende Medical 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 Zhende Medical will offset losses from the drop in Zhende Medical's long position.| Ming Yang vs. Guangzhou Zhujiang Brewery | Ming Yang vs. Heilongjiang Transport Development | Ming Yang vs. Cansino Biologics | Ming Yang vs. Elite Color Environmental |
| Zhende Medical vs. Ming Yang Smart | Zhende Medical vs. 159681 | Zhende Medical vs. 159005 | Zhende Medical 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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