Correlation Between Ming Yang and Fujian Oriental
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By analyzing existing cross correlation between Ming Yang Smart and Fujian Oriental Silver, you can compare the effects of market volatilities on Ming Yang and Fujian Oriental 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 Fujian Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Fujian Oriental.
Diversification Opportunities for Ming Yang and Fujian Oriental
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ming and Fujian is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Fujian Oriental Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Oriental Silver 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 Fujian Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Oriental Silver has no effect on the direction of Ming Yang i.e., Ming Yang and Fujian Oriental go up and down completely randomly.
Pair Corralation between Ming Yang and Fujian Oriental
Assuming the 90 days trading horizon Ming Yang Smart is expected to generate 0.82 times more return on investment than Fujian Oriental. However, Ming Yang Smart is 1.23 times less risky than Fujian Oriental. It trades about 0.01 of its potential returns per unit of risk. Fujian Oriental Silver is currently generating about -0.13 per unit of risk. If you would invest 1,275 in Ming Yang Smart on September 25, 2024 and sell it today you would lose (4.00) from holding Ming Yang Smart or give up 0.31% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Ming Yang Smart vs. Fujian Oriental Silver
Performance |
Timeline |
Ming Yang Smart |
Fujian Oriental Silver |
Ming Yang and Fujian Oriental Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ming Yang and Fujian Oriental
The main advantage of trading using opposite Ming Yang and Fujian Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang position performs unexpectedly, Fujian Oriental 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 Fujian Oriental will offset losses from the drop in Fujian Oriental'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 |
Fujian Oriental vs. Cultural Investment Holdings | Fujian Oriental vs. Gome Telecom Equipment | Fujian Oriental vs. Bus Online Co | Fujian Oriental vs. Holitech Technology Co |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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