Correlation Between Shanghai Sanyou and Ming Yang
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By analyzing existing cross correlation between Shanghai Sanyou Medical and Ming Yang Smart, you can compare the effects of market volatilities on Shanghai Sanyou 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 Shanghai Sanyou with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Sanyou and Ming Yang.
Diversification Opportunities for Shanghai Sanyou and Ming Yang
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Ming is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Sanyou Medical 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 Shanghai Sanyou 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 Shanghai Sanyou Medical 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 Shanghai Sanyou i.e., Shanghai Sanyou and Ming Yang go up and down completely randomly.
Pair Corralation between Shanghai Sanyou and Ming Yang
Assuming the 90 days trading horizon Shanghai Sanyou Medical is expected to generate 1.25 times more return on investment than Ming Yang. However, Shanghai Sanyou is 1.25 times more volatile than Ming Yang Smart. It trades about -0.13 of its potential returns per unit of risk. Ming Yang Smart is currently generating about -0.31 per unit of risk. If you would invest 2,027 in Shanghai Sanyou Medical on November 3, 2024 and sell it today you would lose (155.00) from holding Shanghai Sanyou Medical or give up 7.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Sanyou Medical vs. Ming Yang Smart
Performance |
| Timeline |
| Shanghai Sanyou Medical |
| Ming Yang Smart |
Shanghai Sanyou and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Sanyou and Ming Yang
The main advantage of trading using opposite Shanghai Sanyou and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Sanyou 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.| Shanghai Sanyou vs. Industrial and Commercial | Shanghai Sanyou vs. China Construction Bank | Shanghai Sanyou vs. Agricultural Bank of | Shanghai Sanyou vs. Bank of China |
| Ming Yang vs. Guangzhou KDT Machinery | Ming Yang vs. Longjian Road Bridge | Ming Yang vs. Tjk Machinery Tianjin | Ming Yang vs. Shenzhen Zhongzhuang Construction |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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