Correlation Between Shenzhen SDG and Mingchen Health
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By analyzing existing cross correlation between Shenzhen SDG Service and Mingchen Health Co, you can compare the effects of market volatilities on Shenzhen SDG 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 Shenzhen SDG with a short position of Mingchen Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and Mingchen Health.
Diversification Opportunities for Shenzhen SDG and Mingchen Health
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and Mingchen is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Service and Mingchen Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mingchen Health and Shenzhen SDG 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 Shenzhen SDG Service 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 Shenzhen SDG i.e., Shenzhen SDG and Mingchen Health go up and down completely randomly.
Pair Corralation between Shenzhen SDG and Mingchen Health
Assuming the 90 days trading horizon Shenzhen SDG Service is expected to under-perform the Mingchen Health. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen SDG Service is 1.07 times less risky than Mingchen Health. The stock trades about -0.16 of its potential returns per unit of risk. The Mingchen Health Co is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 1,731 in Mingchen Health Co on October 31, 2024 and sell it today you would lose (92.00) from holding Mingchen Health Co or give up 5.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen SDG Service vs. Mingchen Health Co
Performance |
| Timeline |
| Shenzhen SDG Service |
| Mingchen Health |
Shenzhen SDG and Mingchen Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen SDG and Mingchen Health
The main advantage of trading using opposite Shenzhen SDG and Mingchen Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG 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.| Shenzhen SDG vs. Agricultural Bank of | Shenzhen SDG vs. Industrial and Commercial | Shenzhen SDG vs. Bank of China | Shenzhen SDG vs. China Construction Bank |
| Mingchen Health vs. Hubei Geoway Investment | Mingchen Health vs. Epoxy Base Electronic | Mingchen Health vs. Nantong Haixing Electronics | Mingchen Health vs. Vanfund Urban Investment |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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