Correlation Between Mingchen Health and Sublime China
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By analyzing existing cross correlation between Mingchen Health Co and Sublime China Information, you can compare the effects of market volatilities on Mingchen Health and Sublime China 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 Sublime China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mingchen Health and Sublime China.
Diversification Opportunities for Mingchen Health and Sublime China
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mingchen and Sublime is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Mingchen Health Co and Sublime China Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sublime China Information 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 Sublime China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sublime China Information has no effect on the direction of Mingchen Health i.e., Mingchen Health and Sublime China go up and down completely randomly.
Pair Corralation between Mingchen Health and Sublime China
Assuming the 90 days trading horizon Mingchen Health is expected to generate 1.86 times less return on investment than Sublime China. But when comparing it to its historical volatility, Mingchen Health Co is 1.28 times less risky than Sublime China. It trades about 0.11 of its potential returns per unit of risk. Sublime China Information is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 5,486 in Sublime China Information on October 22, 2024 and sell it today you would earn a total of 721.00 from holding Sublime China Information or generate 13.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mingchen Health Co vs. Sublime China Information
Performance |
| Timeline |
| Mingchen Health |
| Sublime China Information |
Mingchen Health and Sublime China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mingchen Health and Sublime China
The main advantage of trading using opposite Mingchen Health and Sublime China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mingchen Health position performs unexpectedly, Sublime China 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 Sublime China will offset losses from the drop in Sublime China's long position.| Mingchen Health vs. Olympic Circuit Technology | Mingchen Health vs. Kuang Chi Technologies | Mingchen Health vs. HUAQIN TECHNOLOGY LTD | Mingchen Health vs. Holitech Technology Co |
| Sublime China vs. Beijing Yanjing Brewery | Sublime China vs. Yunnan Jianzhijia Health Chain | Sublime China vs. Citic Guoan Wine | Sublime China vs. Mingchen Health Co |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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