Correlation Between Mingchen Health and Nanjing Putian
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By analyzing existing cross correlation between Mingchen Health Co and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Mingchen Health and Nanjing Putian 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 Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mingchen Health and Nanjing Putian.
Diversification Opportunities for Mingchen Health and Nanjing Putian
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mingchen and Nanjing is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Mingchen Health Co and Nanjing Putian Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Putian Telec 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 Nanjing Putian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Putian Telec has no effect on the direction of Mingchen Health i.e., Mingchen Health and Nanjing Putian go up and down completely randomly.
Pair Corralation between Mingchen Health and Nanjing Putian
Assuming the 90 days trading horizon Mingchen Health Co is expected to generate 1.23 times more return on investment than Nanjing Putian. However, Mingchen Health is 1.23 times more volatile than Nanjing Putian Telecommunications. It trades about 0.19 of its potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about -0.02 per unit of risk. If you would invest 1,639 in Mingchen Health Co on November 28, 2024 and sell it today you would earn a total of 146.00 from holding Mingchen Health Co or generate 8.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mingchen Health Co vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Mingchen Health |
| Nanjing Putian Telec |
Mingchen Health and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mingchen Health and Nanjing Putian
The main advantage of trading using opposite Mingchen Health and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mingchen Health position performs unexpectedly, Nanjing Putian 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 Nanjing Putian will offset losses from the drop in Nanjing Putian's long position.| Mingchen Health vs. HanS Laser Tech | Mingchen Health vs. Linktel Technologies Co | Mingchen Health vs. Gosuncn Technology Group | Mingchen Health vs. Bosera CMSK Industrial |
| Nanjing Putian vs. PetroChina Co Ltd | Nanjing Putian vs. Industrial and Commercial | Nanjing Putian vs. China Petroleum Chemical | Nanjing Putian 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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