Correlation Between Shandong Polymer and Mingchen Health
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By analyzing existing cross correlation between Shandong Polymer Biochemicals and Mingchen Health Co, you can compare the effects of market volatilities on Shandong Polymer 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 Shandong Polymer with a short position of Mingchen Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Polymer and Mingchen Health.
Diversification Opportunities for Shandong Polymer and Mingchen Health
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shandong and Mingchen is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Polymer Biochemicals and Mingchen Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mingchen Health and Shandong Polymer 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 Shandong Polymer Biochemicals 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 Shandong Polymer i.e., Shandong Polymer and Mingchen Health go up and down completely randomly.
Pair Corralation between Shandong Polymer and Mingchen Health
Assuming the 90 days trading horizon Shandong Polymer Biochemicals is expected to generate 0.76 times more return on investment than Mingchen Health. However, Shandong Polymer Biochemicals is 1.31 times less risky than Mingchen Health. It trades about 0.0 of its potential returns per unit of risk. Mingchen Health Co is currently generating about 0.0 per unit of risk. If you would invest 553.00 in Shandong Polymer Biochemicals on September 3, 2024 and sell it today you would lose (89.00) from holding Shandong Polymer Biochemicals or give up 16.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Polymer Biochemicals vs. Mingchen Health Co
Performance |
| Timeline |
| Shandong Polymer Bio |
| Mingchen Health |
Shandong Polymer and Mingchen Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Polymer and Mingchen Health
The main advantage of trading using opposite Shandong Polymer and Mingchen Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Polymer 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.| Shandong Polymer vs. Zijin Mining Group | Shandong Polymer vs. Baoshan Iron Steel | Shandong Polymer vs. Rongsheng Petrochemical Co | Shandong Polymer vs. Hoshine Silicon Ind |
| Mingchen Health vs. Beijing Wantai Biological | Mingchen Health vs. Aluminum Corp of | Mingchen Health vs. COL Digital Publishing | Mingchen Health vs. Shaanxi Meineng Clean |
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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