Correlation Between Gan Yuan and Mingchen Health
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By analyzing existing cross correlation between Gan Yuan Foods and Mingchen Health Co, you can compare the effects of market volatilities on Gan Yuan 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 Gan Yuan with a short position of Mingchen Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Mingchen Health.
Diversification Opportunities for Gan Yuan and Mingchen Health
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gan and Mingchen is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and Mingchen Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mingchen Health and Gan Yuan 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 Gan Yuan Foods 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 Gan Yuan i.e., Gan Yuan and Mingchen Health go up and down completely randomly.
Pair Corralation between Gan Yuan and Mingchen Health
Assuming the 90 days trading horizon Gan Yuan Foods is expected to generate 0.67 times more return on investment than Mingchen Health. However, Gan Yuan Foods is 1.49 times less risky than Mingchen Health. It trades about 0.02 of its potential returns per unit of risk. Mingchen Health Co is currently generating about 0.0 per unit of risk. If you would invest 7,283 in Gan Yuan Foods on October 13, 2024 and sell it today you would earn a total of 1,146 from holding Gan Yuan Foods or generate 15.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Yuan Foods vs. Mingchen Health Co
Performance |
| Timeline |
| Gan Yuan Foods |
| Mingchen Health |
Gan Yuan and Mingchen Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Mingchen Health
The main advantage of trading using opposite Gan Yuan and Mingchen Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan 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.| Gan Yuan vs. Zhejiang Yinlun Machinery | Gan Yuan vs. Shenzhen Zhongzhuang Construction | Gan Yuan vs. Jinsanjiang Silicon Material | Gan Yuan vs. Huasi Agricultural Development |
| Mingchen Health vs. Gan Yuan Foods | Mingchen Health vs. Shanghai Ziyan Foods | Mingchen Health vs. Anji Foodstuff Co | Mingchen Health vs. Zhengzhou Qianweiyangchu Food |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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