Correlation Between Mingchen Health and Iat Automobile
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By analyzing existing cross correlation between Mingchen Health Co and Iat Automobile Technology, you can compare the effects of market volatilities on Mingchen Health and Iat Automobile 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 Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mingchen Health and Iat Automobile.
Diversification Opportunities for Mingchen Health and Iat Automobile
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mingchen and Iat is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Mingchen Health Co and Iat Automobile Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iat Automobile Technology 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 Iat Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iat Automobile Technology has no effect on the direction of Mingchen Health i.e., Mingchen Health and Iat Automobile go up and down completely randomly.
Pair Corralation between Mingchen Health and Iat Automobile
Assuming the 90 days trading horizon Mingchen Health Co is expected to under-perform the Iat Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Mingchen Health Co is 1.01 times less risky than Iat Automobile. The stock trades about 0.0 of its potential returns per unit of risk. The Iat Automobile Technology is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,282 in Iat Automobile Technology on August 26, 2024 and sell it today you would lose (31.00) from holding Iat Automobile Technology or give up 2.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mingchen Health Co vs. Iat Automobile Technology
Performance |
| Timeline |
| Mingchen Health |
| Iat Automobile Technology |
Mingchen Health and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mingchen Health and Iat Automobile
The main advantage of trading using opposite Mingchen Health and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mingchen Health position performs unexpectedly, Iat Automobile 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 Iat Automobile will offset losses from the drop in Iat Automobile's long position.| Mingchen Health vs. Industrial and Commercial | Mingchen Health vs. China Construction Bank | Mingchen Health vs. Bank of China | Mingchen Health vs. Agricultural Bank of |
| Iat Automobile vs. Anhui Jianghuai Automobile | Iat Automobile vs. Tongyu Communication | Iat Automobile vs. CITIC Metal Co | Iat Automobile vs. Jiangxi Selon Industrial |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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