Correlation Between China Ming and Manitowoc
Can any of the company-specific risk be diversified away by investing in both China Ming and Manitowoc 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 Manitowoc 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 Manitowoc, you can compare the effects of market volatilities on China Ming and Manitowoc 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 Manitowoc. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Ming and Manitowoc.
Diversification Opportunities for China Ming and Manitowoc
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Manitowoc is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Ming Yang and Manitowoc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manitowoc 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 Manitowoc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manitowoc has no effect on the direction of China Ming i.e., China Ming and Manitowoc go up and down completely randomly.
Pair Corralation between China Ming and Manitowoc
If you would invest (100.00) in China Ming Yang on January 20, 2024 and sell it today you would earn a total of 100.00 from holding China Ming Yang or generate -100.0% 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. Manitowoc
Performance |
| Timeline |
| China Ming Yang |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Manitowoc |
China Ming and Manitowoc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Ming and Manitowoc
The main advantage of trading using opposite China Ming and Manitowoc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Ming position performs unexpectedly, Manitowoc 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 Manitowoc will offset losses from the drop in Manitowoc's long position.| China Ming vs. Asure Software | China Ming vs. Cabo Drilling Corp | China Ming vs. Sphere Entertainment Co | China Ming vs. Golden Energy Offshore |
| Manitowoc vs. AGCO Corporation | Manitowoc vs. CNH Industrial NV | Manitowoc vs. Deere Company | Manitowoc vs. Lindsay |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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