Correlation Between Guangzhou Dongfang and Mingchen Health
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Dongfang Hotel and Mingchen Health Co, you can compare the effects of market volatilities on Guangzhou Dongfang 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 Guangzhou Dongfang with a short position of Mingchen Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Dongfang and Mingchen Health.
Diversification Opportunities for Guangzhou Dongfang and Mingchen Health
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Mingchen is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Dongfang Hotel and Mingchen Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mingchen Health and Guangzhou Dongfang 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 Guangzhou Dongfang Hotel 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 Guangzhou Dongfang i.e., Guangzhou Dongfang and Mingchen Health go up and down completely randomly.
Pair Corralation between Guangzhou Dongfang and Mingchen Health
Assuming the 90 days trading horizon Guangzhou Dongfang Hotel is expected to under-perform the Mingchen Health. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Dongfang Hotel is 1.67 times less risky than Mingchen Health. The stock trades about -0.05 of its potential returns per unit of risk. The Mingchen Health Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,645 in Mingchen Health Co on November 1, 2024 and sell it today you would lose (6.00) from holding Mingchen Health Co or give up 0.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Dongfang Hotel vs. Mingchen Health Co
Performance |
| Timeline |
| Guangzhou Dongfang Hotel |
| Mingchen Health |
Guangzhou Dongfang and Mingchen Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Dongfang and Mingchen Health
The main advantage of trading using opposite Guangzhou Dongfang and Mingchen Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Dongfang 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.| Guangzhou Dongfang vs. Gan Yuan Foods | Guangzhou Dongfang vs. Xiwang Foodstuffs Co | Guangzhou Dongfang vs. China Satellite Communications | Guangzhou Dongfang vs. Guangdong Wens Foodstuff |
| Mingchen Health vs. Allmed Medical Products | Mingchen Health vs. Guangzhou Dongfang Hotel | Mingchen Health vs. Youngy Health Co | Mingchen Health vs. Aier Eye Hospital |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |