Correlation Between Eyebright Medical and Ming Yang
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By analyzing existing cross correlation between Eyebright Medical Technology and Ming Yang Smart, you can compare the effects of market volatilities on Eyebright 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 Eyebright Medical with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eyebright Medical and Ming Yang.
Diversification Opportunities for Eyebright Medical and Ming Yang
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eyebright and Ming is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Eyebright Medical Technology 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 Eyebright 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 Eyebright Medical Technology 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 Eyebright Medical i.e., Eyebright Medical and Ming Yang go up and down completely randomly.
Pair Corralation between Eyebright Medical and Ming Yang
Assuming the 90 days trading horizon Eyebright Medical Technology is expected to generate 1.4 times more return on investment than Ming Yang. However, Eyebright Medical is 1.4 times more volatile than Ming Yang Smart. It trades about -0.03 of its potential returns per unit of risk. Ming Yang Smart is currently generating about -0.06 per unit of risk. If you would invest 22,666 in Eyebright Medical Technology on November 7, 2024 and sell it today you would lose (13,187) from holding Eyebright Medical Technology or give up 58.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eyebright Medical Technology vs. Ming Yang Smart
Performance |
| Timeline |
| Eyebright Medical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ming Yang Smart |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eyebright Medical and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eyebright Medical and Ming Yang
The main advantage of trading using opposite Eyebright Medical and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eyebright 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.The idea behind Eyebright Medical Technology and Ming Yang Smart pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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