Correlation Between Mingchen Health and Beijing Originwater
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By analyzing existing cross correlation between Mingchen Health Co and Beijing Originwater Technology, you can compare the effects of market volatilities on Mingchen Health and Beijing Originwater 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 Beijing Originwater. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mingchen Health and Beijing Originwater.
Diversification Opportunities for Mingchen Health and Beijing Originwater
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mingchen and Beijing is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Mingchen Health Co and Beijing Originwater Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Originwater 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 Beijing Originwater. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Originwater has no effect on the direction of Mingchen Health i.e., Mingchen Health and Beijing Originwater go up and down completely randomly.
Pair Corralation between Mingchen Health and Beijing Originwater
Assuming the 90 days trading horizon Mingchen Health Co is expected to generate 1.07 times more return on investment than Beijing Originwater. However, Mingchen Health is 1.07 times more volatile than Beijing Originwater Technology. It trades about -0.01 of its potential returns per unit of risk. Beijing Originwater Technology is currently generating about -0.13 per unit of risk. If you would invest 1,592 in Mingchen Health Co on September 12, 2024 and sell it today you would lose (18.00) from holding Mingchen Health Co or give up 1.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mingchen Health Co vs. Beijing Originwater Technology
Performance |
| Timeline |
| Mingchen Health |
| Beijing Originwater |
Mingchen Health and Beijing Originwater Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mingchen Health and Beijing Originwater
The main advantage of trading using opposite Mingchen Health and Beijing Originwater positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mingchen Health position performs unexpectedly, Beijing Originwater 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 Beijing Originwater will offset losses from the drop in Beijing Originwater's long position.| Mingchen Health vs. China Petroleum Chemical | Mingchen Health vs. PetroChina Co Ltd | Mingchen Health vs. China State Construction | Mingchen Health vs. China Railway Group |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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