Correlation Between Ming Yang and Shanghai Bailian
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By analyzing existing cross correlation between Ming Yang Smart and Shanghai Bailian Group, you can compare the effects of market volatilities on Ming Yang and Shanghai Bailian 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 Bailian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Shanghai Bailian.
Diversification Opportunities for Ming Yang and Shanghai Bailian
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ming and Shanghai is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Shanghai Bailian Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Bailian 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 Bailian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Bailian has no effect on the direction of Ming Yang i.e., Ming Yang and Shanghai Bailian go up and down completely randomly.
Pair Corralation between Ming Yang and Shanghai Bailian
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the Shanghai Bailian. In addition to that, Ming Yang is 1.24 times more volatile than Shanghai Bailian Group. It trades about -0.28 of its total potential returns per unit of risk. Shanghai Bailian Group is currently generating about 0.01 per unit of volatility. If you would invest 67.00 in Shanghai Bailian Group on October 22, 2024 and sell it today you would earn a total of 0.00 from holding Shanghai Bailian Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. Shanghai Bailian Group
Performance |
| Timeline |
| Ming Yang Smart |
| Shanghai Bailian |
Ming Yang and Shanghai Bailian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Shanghai Bailian
The main advantage of trading using opposite Ming Yang and Shanghai Bailian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Shanghai Bailian 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 Bailian will offset losses from the drop in Shanghai Bailian's long position.| Ming Yang vs. Anhui Gujing Distillery | Ming Yang vs. Harbin Hatou Investment | Ming Yang vs. Shandong Rike Chemical | Ming Yang vs. Citic Guoan Wine |
| Shanghai Bailian vs. Kuang Chi Technologies | Shanghai Bailian vs. Guangdong Qunxing Toys | Shanghai Bailian vs. Suzhou Douson Drilling | Shanghai Bailian vs. Tianjin Hi Tech 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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