Correlation Between Mingchen Health and Healthcare
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By analyzing existing cross correlation between Mingchen Health Co and Healthcare Co, you can compare the effects of market volatilities on Mingchen Health and Healthcare 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 Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mingchen Health and Healthcare.
Diversification Opportunities for Mingchen Health and Healthcare
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mingchen and Healthcare is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Mingchen Health Co and Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthcare 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 Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthcare has no effect on the direction of Mingchen Health i.e., Mingchen Health and Healthcare go up and down completely randomly.
Pair Corralation between Mingchen Health and Healthcare
Assuming the 90 days trading horizon Mingchen Health Co is expected to generate 1.59 times more return on investment than Healthcare. However, Mingchen Health is 1.59 times more volatile than Healthcare Co. It trades about -0.01 of its potential returns per unit of risk. Healthcare Co is currently generating about -0.03 per unit of risk. If you would invest 2,702 in Mingchen Health Co on October 29, 2024 and sell it today you would lose (1,019) from holding Mingchen Health Co or give up 37.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mingchen Health Co vs. Healthcare Co
Performance |
| Timeline |
| Mingchen Health |
| Healthcare |
Mingchen Health and Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mingchen Health and Healthcare
The main advantage of trading using opposite Mingchen Health and Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mingchen Health position performs unexpectedly, Healthcare 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 Healthcare will offset losses from the drop in Healthcare's long position.| Mingchen Health vs. Ming Yang Smart | Mingchen Health vs. 159681 | Mingchen Health vs. 159005 | Mingchen Health vs. Loctek Ergonomic Technology |
| Healthcare vs. Shanghai Jinfeng Wine | Healthcare vs. Holitech Technology Co | Healthcare vs. iSoftStone Information Technology | Healthcare vs. Beijing Kaiwen Education |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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