Correlation Between Southern PublishingMedia and Ming Yang

Can any of the company-specific risk be diversified away by investing in both Southern PublishingMedia and Ming Yang at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Southern PublishingMedia and Ming Yang into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Southern PublishingMedia Co and Ming Yang Smart, you can compare the effects of market volatilities on Southern PublishingMedia 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 Southern PublishingMedia with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern PublishingMedia and Ming Yang.

Diversification Opportunities for Southern PublishingMedia and Ming Yang

0.0

Correlation Coefficient

Southern PublishingMedia  Ming Yang

Pay attention - limited upside

The 3 months correlation between Southern and Ming is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Southern PublishingMedia Co 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 Southern PublishingMedia 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 Southern PublishingMedia Co 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 Southern PublishingMedia i.e., Southern PublishingMedia and Ming Yang go up and down completely randomly.

Pair Corralation between Southern PublishingMedia and Ming Yang

Assuming the 90 days trading horizon Southern PublishingMedia Co is expected to under-perform the Ming Yang. But the stock apears to be less risky and, when comparing its historical volatility, Southern PublishingMedia Co is 1.73 times less risky than Ming Yang. The stock trades about -0.8 of its potential returns per unit of risk. The Ming Yang Smart is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  1,048  in Ming Yang Smart on December 4, 2024 and sell it today you would earn a total of  40.00  from holding Ming Yang Smart or generate 3.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Southern PublishingMedia Co  vs.  Ming Yang Smart

Southern PublishingMedia

Risk-Adjusted Performance

Very Weak

Over the last 90 days Southern PublishingMedia Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Southern PublishingMedia is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ming Yang Smart

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ming Yang Smart has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Southern PublishingMedia and Ming Yang

The main advantage of trading using opposite Southern PublishingMedia and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern PublishingMedia 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.

The idea behind Southern PublishingMedia Co and Ming Yang Smart pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.