Correlation Between Yunnan Jianzhijia and Ming Yang
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By analyzing existing cross correlation between Yunnan Jianzhijia Health Chain and Ming Yang Smart, you can compare the effects of market volatilities on Yunnan Jianzhijia 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 Yunnan Jianzhijia with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Jianzhijia and Ming Yang.
Diversification Opportunities for Yunnan Jianzhijia and Ming Yang
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yunnan and Ming is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Jianzhijia Health Chain 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 Yunnan Jianzhijia 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 Yunnan Jianzhijia Health Chain 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 Yunnan Jianzhijia i.e., Yunnan Jianzhijia and Ming Yang go up and down completely randomly.
Pair Corralation between Yunnan Jianzhijia and Ming Yang
Assuming the 90 days trading horizon Yunnan Jianzhijia Health Chain is expected to generate 2.06 times more return on investment than Ming Yang. However, Yunnan Jianzhijia is 2.06 times more volatile than Ming Yang Smart. It trades about 0.16 of its potential returns per unit of risk. Ming Yang Smart is currently generating about 0.08 per unit of risk. If you would invest 2,266 in Yunnan Jianzhijia Health Chain on August 29, 2024 and sell it today you would earn a total of 368.00 from holding Yunnan Jianzhijia Health Chain or generate 16.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Jianzhijia Health Chain vs. Ming Yang Smart
Performance |
| Timeline |
| Yunnan Jianzhijia |
| Ming Yang Smart |
Yunnan Jianzhijia and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Jianzhijia and Ming Yang
The main advantage of trading using opposite Yunnan Jianzhijia and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Jianzhijia 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.| Yunnan Jianzhijia vs. PetroChina Co Ltd | Yunnan Jianzhijia vs. China Mobile Limited | Yunnan Jianzhijia vs. Ping An Insurance | Yunnan Jianzhijia vs. China Petroleum Chemical |
| Ming Yang vs. Kingsignal Technology Co | Ming Yang vs. Eastern Air Logistics | Ming Yang vs. Harbin Air Conditioning | Ming Yang vs. Oppein Home Group |
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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