Correlation Between Mingchen Health and Shanghai Jinfeng
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By analyzing existing cross correlation between Mingchen Health Co and Shanghai Jinfeng Wine, you can compare the effects of market volatilities on Mingchen Health and Shanghai Jinfeng 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 Shanghai Jinfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mingchen Health and Shanghai Jinfeng.
Diversification Opportunities for Mingchen Health and Shanghai Jinfeng
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mingchen and Shanghai is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Mingchen Health Co and Shanghai Jinfeng Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jinfeng Wine 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 Shanghai Jinfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jinfeng Wine has no effect on the direction of Mingchen Health i.e., Mingchen Health and Shanghai Jinfeng go up and down completely randomly.
Pair Corralation between Mingchen Health and Shanghai Jinfeng
Assuming the 90 days trading horizon Mingchen Health Co is expected to generate 1.01 times more return on investment than Shanghai Jinfeng. However, Mingchen Health is 1.01 times more volatile than Shanghai Jinfeng Wine. It trades about 0.06 of its potential returns per unit of risk. Shanghai Jinfeng Wine is currently generating about 0.02 per unit of risk. If you would invest 1,347 in Mingchen Health Co on October 14, 2024 and sell it today you would earn a total of 133.00 from holding Mingchen Health Co or generate 9.87% 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. Shanghai Jinfeng Wine
Performance |
| Timeline |
| Mingchen Health |
| Shanghai Jinfeng Wine |
Mingchen Health and Shanghai Jinfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mingchen Health and Shanghai Jinfeng
The main advantage of trading using opposite Mingchen Health and Shanghai Jinfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mingchen Health position performs unexpectedly, Shanghai Jinfeng 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 Shanghai Jinfeng will offset losses from the drop in Shanghai Jinfeng's long position.| Mingchen Health vs. Eastroc Beverage Group | Mingchen Health vs. Xinya Electronic Co | Mingchen Health vs. Success Electronics | Mingchen Health vs. Aurora Optoelectronics Co |
| Shanghai Jinfeng vs. Vanfund Urban Investment | Shanghai Jinfeng vs. Dongfeng Automobile Co | Shanghai Jinfeng vs. Allwin Telecommunication Co | Shanghai Jinfeng vs. Metro Investment Development |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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