Pair Correlation Between DOW and China Ming

This module allows you to analyze existing cross correlation between DOW and China Ming Yang Wind Power Group Limited. You can compare the effects of market volatilities on DOW and China Ming 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 DOW with a short position of China Ming. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and China Ming.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 DOW  vs   China Ming Yang Wind Power Gro
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 26.1 times less return on investment than China Ming. But when comparing it to its historical volatility, DOW is 22.15 times less risky than China Ming. It trades about 0.36 of its potential returns per unit of risk. China Ming Yang Wind Power Group Limited is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest  32  in China Ming Yang Wind Power Group Limited on November 11, 2017 and sell it today you would earn a total of  15  from holding China Ming Yang Wind Power Group Limited or generate 46.88% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between DOW and China Ming
0.86

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthStrong
Accuracy45.0%
ValuesDaily Returns

Diversification

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding DOW and China Ming Yang Wind Power Gro in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on China Ming Yang and DOW 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 DOW are associated (or correlated) with China Ming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Ming Yang has no effect on the direction of DOW i.e. DOW and China Ming go up and down completely randomly.
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Comparative Volatility

 Predicted Return Density 
      Returns