Correlation Between Allmed Medical and Mingchen Health
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By analyzing existing cross correlation between Allmed Medical Products and Mingchen Health Co, you can compare the effects of market volatilities on Allmed Medical and Mingchen Health 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 Allmed Medical with a short position of Mingchen Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allmed Medical and Mingchen Health.
Diversification Opportunities for Allmed Medical and Mingchen Health
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Allmed and Mingchen is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Allmed Medical Products and Mingchen Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mingchen Health and Allmed Medical 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 Allmed Medical Products are associated (or correlated) with Mingchen Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mingchen Health has no effect on the direction of Allmed Medical i.e., Allmed Medical and Mingchen Health go up and down completely randomly.
Pair Corralation between Allmed Medical and Mingchen Health
Assuming the 90 days trading horizon Allmed Medical Products is expected to generate 0.66 times more return on investment than Mingchen Health. However, Allmed Medical Products is 1.52 times less risky than Mingchen Health. It trades about 0.21 of its potential returns per unit of risk. Mingchen Health Co is currently generating about 0.01 per unit of risk. If you would invest 873.00 in Allmed Medical Products on November 1, 2024 and sell it today you would earn a total of 84.00 from holding Allmed Medical Products or generate 9.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allmed Medical Products vs. Mingchen Health Co
Performance |
| Timeline |
| Allmed Medical Products |
| Mingchen Health |
Allmed Medical and Mingchen Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allmed Medical and Mingchen Health
The main advantage of trading using opposite Allmed Medical and Mingchen Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allmed Medical position performs unexpectedly, Mingchen Health 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 Mingchen Health will offset losses from the drop in Mingchen Health's long position.| Allmed Medical vs. Heilongjiang Transport Development | Allmed Medical vs. Xiangpiaopiao Food Co | Allmed Medical vs. Shanghai Broadband Technology | Allmed Medical vs. Shaanxi Broadcast TV |
| Mingchen Health vs. Allmed Medical Products | Mingchen Health vs. Guangzhou Dongfang Hotel | Mingchen Health vs. Youngy Health Co | Mingchen Health vs. Aier Eye Hospital |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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