Correlation Between China Ming and Crane
Can any of the company-specific risk be diversified away by investing in both China Ming and Crane 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 China Ming and Crane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Ming Yang and Crane Company, you can compare the effects of market volatilities on China Ming and Crane 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 China Ming with a short position of Crane. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Ming and Crane.
Diversification Opportunities for China Ming and Crane
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Crane is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Ming Yang and Crane Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crane Company and China Ming 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 China Ming Yang are associated (or correlated) with Crane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crane Company has no effect on the direction of China Ming i.e., China Ming and Crane go up and down completely randomly.
Pair Corralation between China Ming and Crane
If you would invest 13,390 in Crane Company on January 26, 2024 and sell it today you would earn a total of 823.00 from holding Crane Company or generate 6.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
China Ming Yang vs. Crane Company
Performance |
| Timeline |
| China Ming Yang |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Crane Company |
China Ming and Crane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Ming and Crane
The main advantage of trading using opposite China Ming and Crane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Ming position performs unexpectedly, Crane 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 Crane will offset losses from the drop in Crane's long position.| China Ming vs. Morgan Stanley | China Ming vs. Rave Restaurant Group | China Ming vs. Pyrophyte Acquisition Corp | China Ming vs. Inflection Point Acquisition |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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