Correlation Between Zhende Medical and Ming Yang
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By analyzing existing cross correlation between Zhende Medical Co and Ming Yang Smart, you can compare the effects of market volatilities on Zhende Medical 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 Zhende Medical with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhende Medical and Ming Yang.
Diversification Opportunities for Zhende Medical and Ming Yang
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhende and Ming is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Zhende Medical 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 Zhende Medical 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 Zhende Medical 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 Zhende Medical i.e., Zhende Medical and Ming Yang go up and down completely randomly.
Pair Corralation between Zhende Medical and Ming Yang
Assuming the 90 days trading horizon Zhende Medical Co is expected to generate 0.43 times more return on investment than Ming Yang. However, Zhende Medical Co is 2.34 times less risky than Ming Yang. It trades about -0.1 of its potential returns per unit of risk. Ming Yang Smart is currently generating about -0.07 per unit of risk. If you would invest 2,258 in Zhende Medical Co on October 23, 2024 and sell it today you would lose (120.00) from holding Zhende Medical Co or give up 5.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhende Medical Co vs. Ming Yang Smart
Performance |
| Timeline |
| Zhende Medical |
| Ming Yang Smart |
Zhende Medical and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhende Medical and Ming Yang
The main advantage of trading using opposite Zhende Medical and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhende Medical 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.| Zhende Medical vs. Ming Yang Smart | Zhende Medical vs. 159681 | Zhende Medical vs. 159005 | Zhende Medical vs. Loctek Ergonomic Technology |
| Ming Yang vs. Guangzhou Zhujiang Brewery | Ming Yang vs. Heilongjiang Transport Development | Ming Yang vs. Cansino Biologics | Ming Yang vs. Elite Color Environmental |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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