Correlation Between Mingchen Health and SUNSEA Telecommunicatio
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By analyzing existing cross correlation between Mingchen Health Co and SUNSEA Telecommunications Co, you can compare the effects of market volatilities on Mingchen Health and SUNSEA Telecommunicatio 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 SUNSEA Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mingchen Health and SUNSEA Telecommunicatio.
Diversification Opportunities for Mingchen Health and SUNSEA Telecommunicatio
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mingchen and SUNSEA is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Mingchen Health Co and SUNSEA Telecommunications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNSEA Telecommunicatio 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 SUNSEA Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUNSEA Telecommunicatio has no effect on the direction of Mingchen Health i.e., Mingchen Health and SUNSEA Telecommunicatio go up and down completely randomly.
Pair Corralation between Mingchen Health and SUNSEA Telecommunicatio
Assuming the 90 days trading horizon Mingchen Health is expected to generate 1.99 times less return on investment than SUNSEA Telecommunicatio. But when comparing it to its historical volatility, Mingchen Health Co is 1.58 times less risky than SUNSEA Telecommunicatio. It trades about 0.09 of its potential returns per unit of risk. SUNSEA Telecommunications Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 859.00 in SUNSEA Telecommunications Co on October 25, 2024 and sell it today you would earn a total of 99.00 from holding SUNSEA Telecommunications Co or generate 11.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mingchen Health Co vs. SUNSEA Telecommunications Co
Performance |
| Timeline |
| Mingchen Health |
| SUNSEA Telecommunicatio |
Mingchen Health and SUNSEA Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mingchen Health and SUNSEA Telecommunicatio
The main advantage of trading using opposite Mingchen Health and SUNSEA Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mingchen Health position performs unexpectedly, SUNSEA Telecommunicatio 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 SUNSEA Telecommunicatio will offset losses from the drop in SUNSEA Telecommunicatio's long position.| Mingchen Health vs. Agricultural Bank of | Mingchen Health vs. Postal Savings Bank | Mingchen Health vs. Bank of Communications | Mingchen Health vs. China Merchants Bank |
| SUNSEA Telecommunicatio vs. Kweichow Moutai Co | SUNSEA Telecommunicatio vs. NAURA Technology Group | SUNSEA Telecommunicatio vs. APT Medical | SUNSEA Telecommunicatio vs. BYD Co Ltd |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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