Correlation Between Zhonghong Pulin and Mingchen Health
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By analyzing existing cross correlation between Zhonghong Pulin Medical and Mingchen Health Co, you can compare the effects of market volatilities on Zhonghong Pulin 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 Zhonghong Pulin with a short position of Mingchen Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhonghong Pulin and Mingchen Health.
Diversification Opportunities for Zhonghong Pulin and Mingchen Health
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhonghong and Mingchen is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Zhonghong Pulin Medical and Mingchen Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mingchen Health and Zhonghong Pulin 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 Zhonghong Pulin Medical 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 Zhonghong Pulin i.e., Zhonghong Pulin and Mingchen Health go up and down completely randomly.
Pair Corralation between Zhonghong Pulin and Mingchen Health
Assuming the 90 days trading horizon Zhonghong Pulin Medical is expected to under-perform the Mingchen Health. But the stock apears to be less risky and, when comparing its historical volatility, Zhonghong Pulin Medical is 1.51 times less risky than Mingchen Health. The stock trades about -0.17 of its potential returns per unit of risk. The Mingchen Health Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,432 in Mingchen Health Co on October 19, 2024 and sell it today you would earn a total of 268.00 from holding Mingchen Health Co or generate 18.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhonghong Pulin Medical vs. Mingchen Health Co
Performance |
| Timeline |
| Zhonghong Pulin Medical |
| Mingchen Health |
Zhonghong Pulin and Mingchen Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhonghong Pulin and Mingchen Health
The main advantage of trading using opposite Zhonghong Pulin and Mingchen Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhonghong Pulin 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.| Zhonghong Pulin vs. Sublime China Information | Zhonghong Pulin vs. Liaoning Chengda Biotechnology | Zhonghong Pulin vs. Yili Chuanning Biotechnology | Zhonghong Pulin vs. Emdoor Information Co |
| Mingchen Health vs. Longmaster Information Tech | Mingchen Health vs. Jinsanjiang Silicon Material | Mingchen Health vs. Sharetronic Data Technology | Mingchen Health vs. Orinko Advanced Plastics |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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