Correlation Between Mingchen Health and Kweichow Moutai
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By analyzing existing cross correlation between Mingchen Health Co and Kweichow Moutai Co, you can compare the effects of market volatilities on Mingchen Health and Kweichow Moutai 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 Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mingchen Health and Kweichow Moutai.
Diversification Opportunities for Mingchen Health and Kweichow Moutai
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mingchen and Kweichow is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Mingchen Health Co and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai 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 Kweichow Moutai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kweichow Moutai has no effect on the direction of Mingchen Health i.e., Mingchen Health and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Mingchen Health and Kweichow Moutai
Assuming the 90 days trading horizon Mingchen Health Co is expected to generate 2.3 times more return on investment than Kweichow Moutai. However, Mingchen Health is 2.3 times more volatile than Kweichow Moutai Co. It trades about 0.19 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.02 per unit of risk. If you would invest 1,357 in Mingchen Health Co on August 30, 2024 and sell it today you would earn a total of 199.00 from holding Mingchen Health Co or generate 14.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mingchen Health Co vs. Kweichow Moutai Co
Performance |
| Timeline |
| Mingchen Health |
| Kweichow Moutai |
Mingchen Health and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mingchen Health and Kweichow Moutai
The main advantage of trading using opposite Mingchen Health and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mingchen Health position performs unexpectedly, Kweichow Moutai 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 Kweichow Moutai will offset losses from the drop in Kweichow Moutai's long position.| Mingchen Health vs. Nanjing Putian Telecommunications | Mingchen Health vs. Shenzhen Hifuture Electric | Mingchen Health vs. Tianjin Realty Development | Mingchen Health vs. Shenyang Huitian Thermal |
| Kweichow Moutai vs. Nanjing Medlander Medical | Kweichow Moutai vs. Changjiang Jinggong Steel | Kweichow Moutai vs. City Development Environment | Kweichow Moutai vs. Double Medical Technology |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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