Correlation Between Shanghai Baosight and Ming Yang
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By analyzing existing cross correlation between Shanghai Baosight Software and Ming Yang Smart, you can compare the effects of market volatilities on Shanghai Baosight 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 Baosight with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Baosight and Ming Yang.
Diversification Opportunities for Shanghai Baosight and Ming Yang
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Ming is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Baosight Software 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 Baosight 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 Baosight Software 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 Baosight i.e., Shanghai Baosight and Ming Yang go up and down completely randomly.
Pair Corralation between Shanghai Baosight and Ming Yang
Assuming the 90 days trading horizon Shanghai Baosight Software is expected to under-perform the Ming Yang. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Baosight Software is 1.27 times less risky than Ming Yang. The stock trades about -0.03 of its potential returns per unit of risk. The Ming Yang Smart is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,458 in Ming Yang Smart on September 14, 2024 and sell it today you would lose (9.00) from holding Ming Yang Smart or give up 0.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.62% |
| Values | Daily Returns |
Shanghai Baosight Software vs. Ming Yang Smart
Performance |
| Timeline |
| Shanghai Baosight |
| Ming Yang Smart |
Shanghai Baosight and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Baosight and Ming Yang
The main advantage of trading using opposite Shanghai Baosight and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Baosight 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 Baosight vs. Ming Yang Smart | Shanghai Baosight vs. 159681 | Shanghai Baosight vs. 159005 | Shanghai Baosight vs. Loctek Ergonomic Technology |
| Ming Yang vs. Xilinmen Furniture Co | Ming Yang vs. Jiangxi Hengda Hi Tech | Ming Yang vs. Wintao Communications Co | Ming Yang vs. Zhangjiagang Freetrade Science |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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