Correlation Between Ming Yang and Dirui Industrial
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By analyzing existing cross correlation between Ming Yang Smart and Dirui Industrial Co, you can compare the effects of market volatilities on Ming Yang and Dirui Industrial 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 Dirui Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Dirui Industrial.
Diversification Opportunities for Ming Yang and Dirui Industrial
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ming and Dirui is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Dirui Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dirui Industrial 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 Dirui Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dirui Industrial has no effect on the direction of Ming Yang i.e., Ming Yang and Dirui Industrial go up and down completely randomly.
Pair Corralation between Ming Yang and Dirui Industrial
Assuming the 90 days trading horizon Ming Yang Smart is expected to generate 0.87 times more return on investment than Dirui Industrial. However, Ming Yang Smart is 1.16 times less risky than Dirui Industrial. It trades about 0.19 of its potential returns per unit of risk. Dirui Industrial Co is currently generating about 0.1 per unit of risk. If you would invest 908.00 in Ming Yang Smart on September 26, 2024 and sell it today you would earn a total of 398.00 from holding Ming Yang Smart or generate 43.83% 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. Dirui Industrial Co
Performance |
Timeline |
Ming Yang Smart |
Dirui Industrial |
Ming Yang and Dirui Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ming Yang and Dirui Industrial
The main advantage of trading using opposite Ming Yang and Dirui Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Dirui Industrial 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 Dirui Industrial will offset losses from the drop in Dirui Industrial'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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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