Correlation Between Shenzhen Noposion and Mingchen Health
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Mingchen Health Co, you can compare the effects of market volatilities on Shenzhen Noposion 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 Shenzhen Noposion with a short position of Mingchen Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Mingchen Health.
Diversification Opportunities for Shenzhen Noposion and Mingchen Health
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Mingchen is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical and Mingchen Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mingchen Health and Shenzhen Noposion 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 Shenzhen Noposion Agrochemicals 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 Shenzhen Noposion i.e., Shenzhen Noposion and Mingchen Health go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Mingchen Health
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to generate 0.95 times more return on investment than Mingchen Health. However, Shenzhen Noposion Agrochemicals is 1.05 times less risky than Mingchen Health. It trades about 0.21 of its potential returns per unit of risk. Mingchen Health Co is currently generating about 0.02 per unit of risk. If you would invest 910.00 in Shenzhen Noposion Agrochemicals on September 4, 2024 and sell it today you would earn a total of 103.00 from holding Shenzhen Noposion Agrochemicals or generate 11.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. Mingchen Health Co
Performance |
| Timeline |
| Shenzhen Noposion |
| Mingchen Health |
Shenzhen Noposion and Mingchen Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Mingchen Health
The main advantage of trading using opposite Shenzhen Noposion and Mingchen Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion 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.| Shenzhen Noposion vs. Zijin Mining Group | Shenzhen Noposion vs. Wanhua Chemical Group | Shenzhen Noposion vs. Baoshan Iron Steel | Shenzhen Noposion vs. Rongsheng Petrochemical Co |
| Mingchen Health vs. Kuangda Technology Group | Mingchen Health vs. Dhc Software Co | Mingchen Health vs. Sinofibers Technology Co | Mingchen Health vs. Eastern Communications Co |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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