Correlation Between Ming Yang and Zhejiang Orient
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By analyzing existing cross correlation between Ming Yang Smart and Zhejiang Orient Gene, you can compare the effects of market volatilities on Ming Yang and Zhejiang Orient 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 Zhejiang Orient. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Zhejiang Orient.
Diversification Opportunities for Ming Yang and Zhejiang Orient
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ming and Zhejiang is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Zhejiang Orient Gene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Orient Gene 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 Zhejiang Orient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Orient Gene has no effect on the direction of Ming Yang i.e., Ming Yang and Zhejiang Orient go up and down completely randomly.
Pair Corralation between Ming Yang and Zhejiang Orient
Assuming the 90 days trading horizon Ming Yang Smart is expected to generate 0.94 times more return on investment than Zhejiang Orient. However, Ming Yang Smart is 1.06 times less risky than Zhejiang Orient. It trades about 0.1 of its potential returns per unit of risk. Zhejiang Orient Gene is currently generating about 0.06 per unit of risk. If you would invest 948.00 in Ming Yang Smart on September 28, 2024 and sell it today you would earn a total of 339.00 from holding Ming Yang Smart or generate 35.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Ming Yang Smart vs. Zhejiang Orient Gene
Performance |
| Timeline |
| Ming Yang Smart |
| Zhejiang Orient Gene |
Ming Yang and Zhejiang Orient Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Zhejiang Orient
The main advantage of trading using opposite Ming Yang and Zhejiang Orient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Zhejiang Orient 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 Zhejiang Orient will offset losses from the drop in Zhejiang Orient's long position.| Ming Yang vs. Cicc Fund Management | Ming Yang vs. UE Furniture Co | Ming Yang vs. Xiamen Goldenhome Co | Ming Yang vs. DO Home Collection |
| Zhejiang Orient vs. Ningxia Younglight Chemicals | Zhejiang Orient vs. Andon Health Co | Zhejiang Orient vs. Sanbo Hospital Management | Zhejiang Orient vs. Goodwill E Health |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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