Correlation Between Success Electronics and Mingchen Health
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By analyzing existing cross correlation between Success Electronics and Mingchen Health Co, you can compare the effects of market volatilities on Success Electronics 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 Success Electronics with a short position of Mingchen Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Success Electronics and Mingchen Health.
Diversification Opportunities for Success Electronics and Mingchen Health
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Success and Mingchen is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Success Electronics and Mingchen Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mingchen Health and Success Electronics 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 Success Electronics 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 Success Electronics i.e., Success Electronics and Mingchen Health go up and down completely randomly.
Pair Corralation between Success Electronics and Mingchen Health
Assuming the 90 days trading horizon Success Electronics is expected to generate 0.83 times more return on investment than Mingchen Health. However, Success Electronics is 1.2 times less risky than Mingchen Health. It trades about -0.09 of its potential returns per unit of risk. Mingchen Health Co is currently generating about -0.26 per unit of risk. If you would invest 406.00 in Success Electronics on October 14, 2024 and sell it today you would lose (27.00) from holding Success Electronics or give up 6.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Success Electronics vs. Mingchen Health Co
Performance |
| Timeline |
| Success Electronics |
| Mingchen Health |
Success Electronics and Mingchen Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Success Electronics and Mingchen Health
The main advantage of trading using opposite Success Electronics and Mingchen Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Success Electronics 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.| Success Electronics vs. Harbin Hatou Investment | Success Electronics vs. Zhejiang JIULI Hi tech | Success Electronics vs. Zhejiang Construction Investment | Success Electronics vs. Luyin Investment Group |
| Mingchen Health vs. Eastroc Beverage Group | Mingchen Health vs. Xinya Electronic Co | Mingchen Health vs. Success Electronics | Mingchen Health vs. Aurora Optoelectronics 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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