Correlation Between Ming Yang and Shanghai Sanyou
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By analyzing existing cross correlation between Ming Yang Smart and Shanghai Sanyou Medical, you can compare the effects of market volatilities on Ming Yang and Shanghai Sanyou 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 Sanyou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Shanghai Sanyou.
Diversification Opportunities for Ming Yang and Shanghai Sanyou
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ming and Shanghai is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Shanghai Sanyou Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Sanyou 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 Shanghai Sanyou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Sanyou Medical has no effect on the direction of Ming Yang i.e., Ming Yang and Shanghai Sanyou go up and down completely randomly.
Pair Corralation between Ming Yang and Shanghai Sanyou
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the Shanghai Sanyou. But the stock apears to be less risky and, when comparing its historical volatility, Ming Yang Smart is 1.13 times less risky than Shanghai Sanyou. The stock trades about -0.3 of its potential returns per unit of risk. The Shanghai Sanyou Medical is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,929 in Shanghai Sanyou Medical on October 23, 2024 and sell it today you would earn a total of 87.00 from holding Shanghai Sanyou Medical or generate 4.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Ming Yang Smart vs. Shanghai Sanyou Medical
Performance |
| Timeline |
| Ming Yang Smart |
| Shanghai Sanyou Medical |
Ming Yang and Shanghai Sanyou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Shanghai Sanyou
The main advantage of trading using opposite Ming Yang and Shanghai Sanyou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Shanghai Sanyou 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 Sanyou will offset losses from the drop in Shanghai Sanyou'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 |
| Shanghai Sanyou vs. Highbroad Advanced Material | Shanghai Sanyou vs. Fujian Longzhou Transportation | Shanghai Sanyou vs. Zhongshan Broad Ocean Motor | Shanghai Sanyou vs. Hainan Haiqi Transportation |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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