Correlation Between Mingchen Health and Zhengping RoadBridge
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By analyzing existing cross correlation between Mingchen Health Co and Zhengping RoadBridge Constr, you can compare the effects of market volatilities on Mingchen Health and Zhengping RoadBridge 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 Zhengping RoadBridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mingchen Health and Zhengping RoadBridge.
Diversification Opportunities for Mingchen Health and Zhengping RoadBridge
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mingchen and Zhengping is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Mingchen Health Co and Zhengping RoadBridge Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengping RoadBridge 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 Zhengping RoadBridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengping RoadBridge has no effect on the direction of Mingchen Health i.e., Mingchen Health and Zhengping RoadBridge go up and down completely randomly.
Pair Corralation between Mingchen Health and Zhengping RoadBridge
Assuming the 90 days trading horizon Mingchen Health Co is expected to generate 1.05 times more return on investment than Zhengping RoadBridge. However, Mingchen Health is 1.05 times more volatile than Zhengping RoadBridge Constr. It trades about 0.04 of its potential returns per unit of risk. Zhengping RoadBridge Constr is currently generating about -0.06 per unit of risk. If you would invest 1,615 in Mingchen Health Co on November 3, 2024 and sell it today you would earn a total of 24.00 from holding Mingchen Health Co or generate 1.49% 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. Zhengping RoadBridge Constr
Performance |
| Timeline |
| Mingchen Health |
| Zhengping RoadBridge |
Mingchen Health and Zhengping RoadBridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mingchen Health and Zhengping RoadBridge
The main advantage of trading using opposite Mingchen Health and Zhengping RoadBridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mingchen Health position performs unexpectedly, Zhengping RoadBridge 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 Zhengping RoadBridge will offset losses from the drop in Zhengping RoadBridge's long position.| Mingchen Health vs. Kweichow Moutai Co | Mingchen Health vs. Shenzhen Mindray Bio Medical | Mingchen Health vs. Jiangsu Pacific Quartz | Mingchen Health vs. G bits Network Technology |
| Zhengping RoadBridge vs. Xilong Chemical Co | Zhengping RoadBridge vs. Marssenger Kitchenware Co | Zhengping RoadBridge vs. RoadMain T Co | Zhengping RoadBridge vs. Hainan Haiqi Transportation |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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