Correlation Between Xilinmen Furniture and Ming Yang
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By analyzing existing cross correlation between Xilinmen Furniture Co and Ming Yang Smart, you can compare the effects of market volatilities on Xilinmen Furniture and Ming Yang 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 Xilinmen Furniture with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xilinmen Furniture and Ming Yang.
Diversification Opportunities for Xilinmen Furniture and Ming Yang
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xilinmen and Ming is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Xilinmen Furniture Co and Ming Yang Smart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ming Yang Smart and Xilinmen Furniture 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 Xilinmen Furniture Co are associated (or correlated) with Ming Yang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ming Yang Smart has no effect on the direction of Xilinmen Furniture i.e., Xilinmen Furniture and Ming Yang go up and down completely randomly.
Pair Corralation between Xilinmen Furniture and Ming Yang
Assuming the 90 days trading horizon Xilinmen Furniture is expected to generate 3.67 times less return on investment than Ming Yang. But when comparing it to its historical volatility, Xilinmen Furniture Co is 1.35 times less risky than Ming Yang. It trades about 0.06 of its potential returns per unit of risk. Ming Yang Smart is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,312 in Ming Yang Smart on September 14, 2024 and sell it today you would earn a total of 137.00 from holding Ming Yang Smart or generate 10.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xilinmen Furniture Co vs. Ming Yang Smart
Performance |
| Timeline |
| Xilinmen Furniture |
| Ming Yang Smart |
Xilinmen Furniture and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xilinmen Furniture and Ming Yang
The main advantage of trading using opposite Xilinmen Furniture and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xilinmen Furniture position performs unexpectedly, Ming Yang 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 Ming Yang will offset losses from the drop in Ming Yang's long position.| Xilinmen Furniture vs. Western Metal Materials | Xilinmen Furniture vs. Xinjiang Communications Construction | Xilinmen Furniture vs. Guangdong Qunxing Toys | Xilinmen Furniture vs. Hainan Airlines Co |
| Ming Yang vs. Xilinmen Furniture Co | Ming Yang vs. Jiangxi Hengda Hi Tech | Ming Yang vs. Wintao Communications Co | Ming Yang vs. Zhangjiagang Freetrade Science |
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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