Correlation Between Mingchen Health and Shenzhen Agricultural
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By analyzing existing cross correlation between Mingchen Health Co and Shenzhen Agricultural Products, you can compare the effects of market volatilities on Mingchen Health and Shenzhen Agricultural 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 Mingchen Health with a short position of Shenzhen Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mingchen Health and Shenzhen Agricultural.
Diversification Opportunities for Mingchen Health and Shenzhen Agricultural
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mingchen and Shenzhen is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Mingchen Health Co and Shenzhen Agricultural Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Agricultural and Mingchen Health 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 Mingchen Health Co are associated (or correlated) with Shenzhen Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Agricultural has no effect on the direction of Mingchen Health i.e., Mingchen Health and Shenzhen Agricultural go up and down completely randomly.
Pair Corralation between Mingchen Health and Shenzhen Agricultural
Assuming the 90 days trading horizon Mingchen Health Co is expected to generate 2.17 times more return on investment than Shenzhen Agricultural. However, Mingchen Health is 2.17 times more volatile than Shenzhen Agricultural Products. It trades about 0.01 of its potential returns per unit of risk. Shenzhen Agricultural Products is currently generating about -0.21 per unit of risk. If you would invest 1,707 in Mingchen Health Co on October 20, 2024 and sell it today you would lose (7.00) from holding Mingchen Health Co or give up 0.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mingchen Health Co vs. Shenzhen Agricultural Products
Performance |
| Timeline |
| Mingchen Health |
| Shenzhen Agricultural |
Mingchen Health and Shenzhen Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mingchen Health and Shenzhen Agricultural
The main advantage of trading using opposite Mingchen Health and Shenzhen Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mingchen Health position performs unexpectedly, Shenzhen Agricultural 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 Shenzhen Agricultural will offset losses from the drop in Shenzhen Agricultural's long position.| Mingchen Health vs. Duzhe Publishing Media | Mingchen Health vs. Wasu Media Holding | Mingchen Health vs. Mango Excellent Media | Mingchen Health vs. Hengdian Entertainment Co |
| Shenzhen Agricultural vs. Mingchen Health Co | Shenzhen Agricultural vs. Shenzhen Bioeasy Biotechnology | Shenzhen Agricultural vs. Goodwill E Health | Shenzhen Agricultural vs. Hangzhou Minsheng Healthcare |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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