Correlation Between Mingchen Health and AVCON Information
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By analyzing existing cross correlation between Mingchen Health Co and AVCON Information Tech, you can compare the effects of market volatilities on Mingchen Health and AVCON Information 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 AVCON Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mingchen Health and AVCON Information.
Diversification Opportunities for Mingchen Health and AVCON Information
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mingchen and AVCON is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Mingchen Health Co and AVCON Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVCON Information Tech 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 AVCON Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVCON Information Tech has no effect on the direction of Mingchen Health i.e., Mingchen Health and AVCON Information go up and down completely randomly.
Pair Corralation between Mingchen Health and AVCON Information
Assuming the 90 days trading horizon Mingchen Health Co is expected to generate 1.18 times more return on investment than AVCON Information. However, Mingchen Health is 1.18 times more volatile than AVCON Information Tech. It trades about -0.06 of its potential returns per unit of risk. AVCON Information Tech is currently generating about -0.08 per unit of risk. If you would invest 1,731 in Mingchen Health Co on October 31, 2024 and sell it today you would lose (92.00) from holding Mingchen Health Co or give up 5.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mingchen Health Co vs. AVCON Information Tech
Performance |
| Timeline |
| Mingchen Health |
| AVCON Information Tech |
Mingchen Health and AVCON Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mingchen Health and AVCON Information
The main advantage of trading using opposite Mingchen Health and AVCON Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mingchen Health position performs unexpectedly, AVCON Information 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 AVCON Information will offset losses from the drop in AVCON Information's long position.| Mingchen Health vs. Hubei Geoway Investment | Mingchen Health vs. Epoxy Base Electronic | Mingchen Health vs. Nantong Haixing Electronics | Mingchen Health vs. Vanfund Urban Investment |
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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