Correlation Between Xiamen Goldenhome and Ming Yang
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By analyzing existing cross correlation between Xiamen Goldenhome Co and Ming Yang Smart, you can compare the effects of market volatilities on Xiamen Goldenhome 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 Xiamen Goldenhome with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and Ming Yang.
Diversification Opportunities for Xiamen Goldenhome and Ming Yang
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiamen and Ming is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome 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 Xiamen Goldenhome 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 Xiamen Goldenhome 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 Xiamen Goldenhome i.e., Xiamen Goldenhome and Ming Yang go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and Ming Yang
Assuming the 90 days trading horizon Xiamen Goldenhome Co is expected to generate 1.13 times more return on investment than Ming Yang. However, Xiamen Goldenhome is 1.13 times more volatile than Ming Yang Smart. It trades about -0.02 of its potential returns per unit of risk. Ming Yang Smart is currently generating about -0.05 per unit of risk. If you would invest 3,231 in Xiamen Goldenhome Co on September 28, 2024 and sell it today you would lose (1,121) from holding Xiamen Goldenhome Co or give up 34.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Xiamen Goldenhome Co vs. Ming Yang Smart
Performance |
| Timeline |
| Xiamen Goldenhome |
| Ming Yang Smart |
Xiamen Goldenhome and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Goldenhome and Ming Yang
The main advantage of trading using opposite Xiamen Goldenhome and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome 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.| Xiamen Goldenhome vs. Agricultural Bank of | Xiamen Goldenhome vs. Industrial and Commercial | Xiamen Goldenhome vs. Bank of China | Xiamen Goldenhome vs. China Construction Bank |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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