Correlation Between Ming Yang and Cabio Biotech
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By analyzing existing cross correlation between Ming Yang Smart and Cabio Biotech Wuhan, you can compare the effects of market volatilities on Ming Yang and Cabio Biotech 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 Cabio Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Cabio Biotech.
Diversification Opportunities for Ming Yang and Cabio Biotech
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ming and Cabio is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Cabio Biotech Wuhan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cabio Biotech Wuhan 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 Cabio Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cabio Biotech Wuhan has no effect on the direction of Ming Yang i.e., Ming Yang and Cabio Biotech go up and down completely randomly.
Pair Corralation between Ming Yang and Cabio Biotech
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the Cabio Biotech. But the stock apears to be less risky and, when comparing its historical volatility, Ming Yang Smart is 1.36 times less risky than Cabio Biotech. The stock trades about -0.07 of its potential returns per unit of risk. The Cabio Biotech Wuhan is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 3,575 in Cabio Biotech Wuhan on October 11, 2024 and sell it today you would lose (1,766) from holding Cabio Biotech Wuhan or give up 49.4% 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. Cabio Biotech Wuhan
Performance |
| Timeline |
| Ming Yang Smart |
| Cabio Biotech Wuhan |
Ming Yang and Cabio Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Cabio Biotech
The main advantage of trading using opposite Ming Yang and Cabio Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Cabio Biotech 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 Cabio Biotech will offset losses from the drop in Cabio Biotech's long position.| Ming Yang vs. Guangdong Qunxing Toys | Ming Yang vs. Jinzai Food Group | Ming Yang vs. Anhui Transport Consulting | Ming Yang vs. Jiajia Food Group |
| Cabio Biotech vs. Ping An Insurance | Cabio Biotech vs. Maoming Petro Chemical Shihua | Cabio Biotech vs. Guilin Seamild Foods | Cabio Biotech vs. Dymatic Chemicals |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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