Correlation Between Mingchen Health and Sobute New
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By analyzing existing cross correlation between Mingchen Health Co and Sobute New Materials, you can compare the effects of market volatilities on Mingchen Health and Sobute New 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 Sobute New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mingchen Health and Sobute New.
Diversification Opportunities for Mingchen Health and Sobute New
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mingchen and Sobute is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Mingchen Health Co and Sobute New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sobute New Materials 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 Sobute New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sobute New Materials has no effect on the direction of Mingchen Health i.e., Mingchen Health and Sobute New go up and down completely randomly.
Pair Corralation between Mingchen Health and Sobute New
Assuming the 90 days trading horizon Mingchen Health Co is expected to generate 1.63 times more return on investment than Sobute New. However, Mingchen Health is 1.63 times more volatile than Sobute New Materials. It trades about 0.08 of its potential returns per unit of risk. Sobute New Materials is currently generating about 0.06 per unit of risk. If you would invest 1,221 in Mingchen Health Co on November 3, 2024 and sell it today you would earn a total of 418.00 from holding Mingchen Health Co or generate 34.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mingchen Health Co vs. Sobute New Materials
Performance |
| Timeline |
| Mingchen Health |
| Sobute New Materials |
Mingchen Health and Sobute New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mingchen Health and Sobute New
The main advantage of trading using opposite Mingchen Health and Sobute New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mingchen Health position performs unexpectedly, Sobute New 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 Sobute New will offset losses from the drop in Sobute New's long position.| Mingchen Health vs. Nanjing Putian Telecommunications | Mingchen Health vs. Guangxi Wuzhou Communications | Mingchen Health vs. Nanxing Furniture Machinery | Mingchen Health vs. Bank of Communications |
| Sobute New vs. HUAQIN TECHNOLOGY LTD | Sobute New vs. Agricultural Bank of | Sobute New vs. China Everbright Bank | Sobute New vs. GRG Banking Equipment |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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