Correlation Between Kuangda Technology and Mingchen Health
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By analyzing existing cross correlation between Kuangda Technology Group and Mingchen Health Co, you can compare the effects of market volatilities on Kuangda Technology 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 Kuangda Technology with a short position of Mingchen Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Mingchen Health.
Diversification Opportunities for Kuangda Technology and Mingchen Health
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kuangda and Mingchen is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Mingchen Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mingchen Health and Kuangda Technology 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 Kuangda Technology Group 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 Kuangda Technology i.e., Kuangda Technology and Mingchen Health go up and down completely randomly.
Pair Corralation between Kuangda Technology and Mingchen Health
Assuming the 90 days trading horizon Kuangda Technology Group is expected to generate 0.98 times more return on investment than Mingchen Health. However, Kuangda Technology Group is 1.02 times less risky than Mingchen Health. It trades about 0.2 of its potential returns per unit of risk. Mingchen Health Co is currently generating about 0.16 per unit of risk. If you would invest 372.00 in Kuangda Technology Group on September 4, 2024 and sell it today you would earn a total of 165.00 from holding Kuangda Technology Group or generate 44.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuangda Technology Group vs. Mingchen Health Co
Performance |
| Timeline |
| Kuangda Technology |
| Mingchen Health |
Kuangda Technology and Mingchen Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Mingchen Health
The main advantage of trading using opposite Kuangda Technology and Mingchen Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology 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.| Kuangda Technology vs. Industrial and Commercial | Kuangda Technology vs. China Construction Bank | Kuangda Technology vs. Agricultural Bank of | Kuangda Technology vs. Bank of China |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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