Correlation Between China Reform and Mingchen Health
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By analyzing existing cross correlation between China Reform Health and Mingchen Health Co, you can compare the effects of market volatilities on China Reform and Mingchen Health 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 Reform with a short position of Mingchen Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Reform and Mingchen Health.
Diversification Opportunities for China Reform and Mingchen Health
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Mingchen is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding China Reform Health and Mingchen Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mingchen Health and China Reform 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 Reform Health are associated (or correlated) with Mingchen Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mingchen Health has no effect on the direction of China Reform i.e., China Reform and Mingchen Health go up and down completely randomly.
Pair Corralation between China Reform and Mingchen Health
Assuming the 90 days trading horizon China Reform Health is expected to generate 1.03 times more return on investment than Mingchen Health. However, China Reform is 1.03 times more volatile than Mingchen Health Co. It trades about 0.03 of its potential returns per unit of risk. Mingchen Health Co is currently generating about -0.05 per unit of risk. If you would invest 1,180 in China Reform Health on August 26, 2024 and sell it today you would earn a total of 174.00 from holding China Reform Health or generate 14.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Reform Health vs. Mingchen Health Co
Performance |
| Timeline |
| China Reform Health |
| Mingchen Health |
China Reform and Mingchen Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Reform and Mingchen Health
The main advantage of trading using opposite China Reform and Mingchen Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Reform position performs unexpectedly, Mingchen Health 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 Mingchen Health will offset losses from the drop in Mingchen Health's long position.| China Reform vs. ZYF Lopsking Aluminum | China Reform vs. Jiangxi JDL Environmental | China Reform vs. Hang Xiao Steel | China Reform vs. Dongjiang Environmental Co |
| Mingchen Health vs. Industrial and Commercial | Mingchen Health vs. China Construction Bank | Mingchen Health vs. Bank of China | Mingchen Health vs. Agricultural Bank of |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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