Correlation Between Ming Yang and Zhonghong Pulin
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By analyzing existing cross correlation between Ming Yang Smart and Zhonghong Pulin Medical, you can compare the effects of market volatilities on Ming Yang and Zhonghong Pulin 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 Ming Yang with a short position of Zhonghong Pulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Zhonghong Pulin.
Diversification Opportunities for Ming Yang and Zhonghong Pulin
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ming and Zhonghong is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Zhonghong Pulin Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhonghong Pulin Medical and Ming Yang 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 Ming Yang Smart are associated (or correlated) with Zhonghong Pulin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhonghong Pulin Medical has no effect on the direction of Ming Yang i.e., Ming Yang and Zhonghong Pulin go up and down completely randomly.
Pair Corralation between Ming Yang and Zhonghong Pulin
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the Zhonghong Pulin. But the stock apears to be less risky and, when comparing its historical volatility, Ming Yang Smart is 1.28 times less risky than Zhonghong Pulin. The stock trades about -0.05 of its potential returns per unit of risk. The Zhonghong Pulin Medical is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,338 in Zhonghong Pulin Medical on September 25, 2024 and sell it today you would earn a total of 20.00 from holding Zhonghong Pulin Medical or generate 1.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Ming Yang Smart vs. Zhonghong Pulin Medical
Performance |
Timeline |
Ming Yang Smart |
Zhonghong Pulin Medical |
Ming Yang and Zhonghong Pulin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ming Yang and Zhonghong Pulin
The main advantage of trading using opposite Ming Yang and Zhonghong Pulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Zhonghong Pulin 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 Zhonghong Pulin will offset losses from the drop in Zhonghong Pulin's long position.Ming Yang vs. Dazhong Transportation Group | Ming Yang vs. Jiangsu Jinling Sports | Ming Yang vs. Lander Sports Development | Ming Yang vs. Sunny Loan Top |
Zhonghong Pulin vs. New China Life | Zhonghong Pulin vs. Ming Yang Smart | Zhonghong Pulin vs. 159681 | Zhonghong Pulin vs. 159005 |
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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