Correlation Between Shandong Sanyuan and Ming Yang
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By analyzing existing cross correlation between Shandong Sanyuan Biotechnology and Ming Yang Smart, you can compare the effects of market volatilities on Shandong Sanyuan 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 Shandong Sanyuan with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sanyuan and Ming Yang.
Diversification Opportunities for Shandong Sanyuan and Ming Yang
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shandong and Ming is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sanyuan Biotechnology 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 Shandong Sanyuan 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 Shandong Sanyuan Biotechnology 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 Shandong Sanyuan i.e., Shandong Sanyuan and Ming Yang go up and down completely randomly.
Pair Corralation between Shandong Sanyuan and Ming Yang
Assuming the 90 days trading horizon Shandong Sanyuan is expected to generate 2.27 times less return on investment than Ming Yang. But when comparing it to its historical volatility, Shandong Sanyuan Biotechnology is 1.41 times less risky than Ming Yang. It trades about 0.03 of its potential returns per unit of risk. Ming Yang Smart is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,275 in Ming Yang Smart on September 25, 2024 and sell it today you would earn a total of 31.00 from holding Ming Yang Smart or generate 2.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shandong Sanyuan Biotechnology vs. Ming Yang Smart
Performance |
Timeline |
Shandong Sanyuan Bio |
Ming Yang Smart |
Shandong Sanyuan and Ming Yang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shandong Sanyuan and Ming Yang
The main advantage of trading using opposite Shandong Sanyuan and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sanyuan 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.Shandong Sanyuan vs. Ming Yang Smart | Shandong Sanyuan vs. 159681 | Shandong Sanyuan vs. 159005 | Shandong Sanyuan vs. Loctek Ergonomic Technology |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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