Correlation Between China Securities and Mingchen Health
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By analyzing existing cross correlation between China Securities 800 and Mingchen Health Co, you can compare the effects of market volatilities on China Securities 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 Securities with a short position of Mingchen Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Mingchen Health.
Diversification Opportunities for China Securities and Mingchen Health
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Mingchen is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 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 Securities 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 Securities 800 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 Securities i.e., China Securities and Mingchen Health go up and down completely randomly.
Pair Corralation between China Securities and Mingchen Health
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.37 times more return on investment than Mingchen Health. However, China Securities 800 is 2.68 times less risky than Mingchen Health. It trades about 0.01 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 420,089 in China Securities 800 on September 1, 2024 and sell it today you would earn a total of 3,447 from holding China Securities 800 or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
China Securities 800 vs. Mingchen Health Co
Performance |
| Timeline |
China Securities and Mingchen Health Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Mingchen Health Co
Pair trading matchups for Mingchen Health
Pair Trading with China Securities and Mingchen Health
The main advantage of trading using opposite China Securities and Mingchen Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities 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 Securities vs. Everjoy Health Group | China Securities vs. Fuzhou Rockchip Electronics | China Securities vs. Hangzhou Prevail Optoelectronic | China Securities vs. Aurora Optoelectronics Co |
| Mingchen Health vs. Industrial and Commercial | Mingchen Health vs. Kweichow Moutai Co | Mingchen Health vs. Agricultural Bank of | Mingchen Health vs. China Mobile Limited |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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