Correlation Between Ming Yang and Xiamen CD
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By analyzing existing cross correlation between Ming Yang Smart and Xiamen CD, you can compare the effects of market volatilities on Ming Yang and Xiamen CD 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 Xiamen CD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Xiamen CD.
Diversification Opportunities for Ming Yang and Xiamen CD
Poor diversification
The 3 months correlation between Ming and Xiamen is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Xiamen CD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen CD 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 Xiamen CD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen CD has no effect on the direction of Ming Yang i.e., Ming Yang and Xiamen CD go up and down completely randomly.
Pair Corralation between Ming Yang and Xiamen CD
Assuming the 90 days trading horizon Ming Yang is expected to generate 2.88 times less return on investment than Xiamen CD. In addition to that, Ming Yang is 2.37 times more volatile than Xiamen CD. It trades about 0.05 of its total potential returns per unit of risk. Xiamen CD is currently generating about 0.34 per unit of volatility. If you would invest 941.00 in Xiamen CD on September 26, 2024 and sell it today you would earn a total of 93.00 from holding Xiamen CD or generate 9.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Ming Yang Smart vs. Xiamen CD
Performance |
Timeline |
Ming Yang Smart |
Xiamen CD |
Ming Yang and Xiamen CD Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ming Yang and Xiamen CD
The main advantage of trading using opposite Ming Yang and Xiamen CD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Xiamen CD 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 Xiamen CD will offset losses from the drop in Xiamen CD's long position.Ming Yang vs. Chengdu Xinzhu RoadBridge | Ming Yang vs. MayAir Technology Co | Ming Yang vs. Longjian Road Bridge | Ming Yang vs. Jinsanjiang Silicon Material |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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