Correlation Between Mingchen Health and By Health
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By analyzing existing cross correlation between Mingchen Health Co and By health, you can compare the effects of market volatilities on Mingchen Health and By Health 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 By Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mingchen Health and By Health.
Diversification Opportunities for Mingchen Health and By Health
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mingchen and 300146 is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Mingchen Health Co and By health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on By 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 By Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of By health has no effect on the direction of Mingchen Health i.e., Mingchen Health and By Health go up and down completely randomly.
Pair Corralation between Mingchen Health and By Health
Assuming the 90 days trading horizon Mingchen Health Co is expected to generate 1.72 times more return on investment than By Health. However, Mingchen Health is 1.72 times more volatile than By health. It trades about 0.13 of its potential returns per unit of risk. By health is currently generating about -0.08 per unit of risk. If you would invest 1,436 in Mingchen Health Co on August 29, 2024 and sell it today you would earn a total of 140.00 from holding Mingchen Health Co or generate 9.75% 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. By health
Performance |
| Timeline |
| Mingchen Health |
| By health |
Mingchen Health and By Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mingchen Health and By Health
The main advantage of trading using opposite Mingchen Health and By Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mingchen Health position performs unexpectedly, By Health 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 By Health will offset losses from the drop in By Health'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 |
| By Health vs. PetroChina Co Ltd | By Health vs. China Mobile Limited | By Health vs. Ping An Insurance | By Health vs. China Petroleum Chemical |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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