Correlation Between Youngy Health and Mingchen Health
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By analyzing existing cross correlation between Youngy Health Co and Mingchen Health Co, you can compare the effects of market volatilities on Youngy Health 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 Youngy Health with a short position of Mingchen Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youngy Health and Mingchen Health.
Diversification Opportunities for Youngy Health and Mingchen Health
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Youngy and Mingchen is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Youngy Health Co and Mingchen Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mingchen Health and Youngy 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 Youngy Health Co 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 Youngy Health i.e., Youngy Health and Mingchen Health go up and down completely randomly.
Pair Corralation between Youngy Health and Mingchen Health
Assuming the 90 days trading horizon Youngy Health is expected to generate 1.14 times less return on investment than Mingchen Health. But when comparing it to its historical volatility, Youngy Health Co is 1.3 times less risky than Mingchen Health. It trades about 0.01 of its potential returns per unit of risk. Mingchen Health Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,645 in Mingchen Health Co on November 1, 2024 and sell it today you would lose (6.00) from holding Mingchen Health Co or give up 0.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youngy Health Co vs. Mingchen Health Co
Performance |
| Timeline |
| Youngy Health |
| Mingchen Health |
Youngy Health and Mingchen Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youngy Health and Mingchen Health
The main advantage of trading using opposite Youngy Health and Mingchen Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youngy Health 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.| Youngy Health vs. Chongqing Brewery Co | Youngy Health vs. Guangzhou Dongfang Hotel | Youngy Health vs. Shenyang Chemical Industry | Youngy Health vs. Xinxiang Chemical Fiber |
| 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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