Correlation Between Ming Yang and Qingdao Foods
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By analyzing existing cross correlation between Ming Yang Smart and Qingdao Foods Co, you can compare the effects of market volatilities on Ming Yang and Qingdao Foods 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 Qingdao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Qingdao Foods.
Diversification Opportunities for Ming Yang and Qingdao Foods
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ming and Qingdao is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Qingdao Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Foods 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 Qingdao Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Foods has no effect on the direction of Ming Yang i.e., Ming Yang and Qingdao Foods go up and down completely randomly.
Pair Corralation between Ming Yang and Qingdao Foods
Assuming the 90 days trading horizon Ming Yang is expected to generate 1.31 times less return on investment than Qingdao Foods. But when comparing it to its historical volatility, Ming Yang Smart is 1.07 times less risky than Qingdao Foods. It trades about 0.05 of its potential returns per unit of risk. Qingdao Foods Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,358 in Qingdao Foods Co on September 26, 2024 and sell it today you would earn a total of 45.00 from holding Qingdao Foods Co or generate 3.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Ming Yang Smart vs. Qingdao Foods Co
Performance |
Timeline |
Ming Yang Smart |
Qingdao Foods |
Ming Yang and Qingdao Foods Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ming Yang and Qingdao Foods
The main advantage of trading using opposite Ming Yang and Qingdao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Qingdao Foods 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 Qingdao Foods will offset losses from the drop in Qingdao Foods' 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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