Correlation Between HOB Biotech and Ming Yang
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By analyzing existing cross correlation between HOB Biotech Group and Ming Yang Smart, you can compare the effects of market volatilities on HOB Biotech 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 HOB Biotech with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of HOB Biotech and Ming Yang.
Diversification Opportunities for HOB Biotech and Ming Yang
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HOB and Ming is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding HOB Biotech Group 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 HOB Biotech 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 HOB Biotech Group 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 HOB Biotech i.e., HOB Biotech and Ming Yang go up and down completely randomly.
Pair Corralation between HOB Biotech and Ming Yang
Assuming the 90 days trading horizon HOB Biotech Group is expected to under-perform the Ming Yang. In addition to that, HOB Biotech is 2.04 times more volatile than Ming Yang Smart. It trades about -0.17 of its total potential returns per unit of risk. Ming Yang Smart is currently generating about 0.1 per unit of volatility. If you would invest 1,253 in Ming Yang Smart on September 19, 2024 and sell it today you would earn a total of 81.00 from holding Ming Yang Smart or generate 6.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HOB Biotech Group vs. Ming Yang Smart
Performance |
| Timeline |
| HOB Biotech Group |
| Ming Yang Smart |
HOB Biotech and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HOB Biotech and Ming Yang
The main advantage of trading using opposite HOB Biotech and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HOB Biotech 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.| HOB Biotech vs. Industrial and Commercial | HOB Biotech vs. Kweichow Moutai Co | HOB Biotech vs. Agricultural Bank of | HOB Biotech vs. China Mobile Limited |
| Ming Yang vs. Great Sun Foods Co | Ming Yang vs. Guilin Seamild Foods | Ming Yang vs. Leaguer Shenzhen MicroElectronics | Ming Yang vs. HaiXin Foods Co |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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