Correlation Between Mingchen Health and Impulse Qingdao
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By analyzing existing cross correlation between Mingchen Health Co and Impulse Qingdao Health, you can compare the effects of market volatilities on Mingchen Health and Impulse Qingdao 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 Impulse Qingdao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mingchen Health and Impulse Qingdao.
Diversification Opportunities for Mingchen Health and Impulse Qingdao
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mingchen and Impulse is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Mingchen Health Co and Impulse Qingdao Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impulse Qingdao Health 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 Impulse Qingdao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impulse Qingdao Health has no effect on the direction of Mingchen Health i.e., Mingchen Health and Impulse Qingdao go up and down completely randomly.
Pair Corralation between Mingchen Health and Impulse Qingdao
Assuming the 90 days trading horizon Mingchen Health is expected to generate 2.12 times less return on investment than Impulse Qingdao. But when comparing it to its historical volatility, Mingchen Health Co is 1.27 times less risky than Impulse Qingdao. It trades about 0.13 of its potential returns per unit of risk. Impulse Qingdao Health is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,685 in Impulse Qingdao Health on August 29, 2024 and sell it today you would earn a total of 381.00 from holding Impulse Qingdao Health or generate 22.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mingchen Health Co vs. Impulse Qingdao Health
Performance |
| Timeline |
| Mingchen Health |
| Impulse Qingdao Health |
Mingchen Health and Impulse Qingdao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mingchen Health and Impulse Qingdao
The main advantage of trading using opposite Mingchen Health and Impulse Qingdao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mingchen Health position performs unexpectedly, Impulse Qingdao 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 Impulse Qingdao will offset losses from the drop in Impulse Qingdao's long position.| Mingchen Health vs. PetroChina Co Ltd | Mingchen Health vs. China Mobile Limited | Mingchen Health vs. Ping An Insurance | Mingchen Health vs. China Petroleum Chemical |
| Impulse Qingdao vs. Agricultural Bank of | Impulse Qingdao vs. Industrial and Commercial | Impulse Qingdao vs. Bank of China | Impulse Qingdao vs. China Construction Bank |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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