Correlation Between Jinsanjiang Silicon and Mingchen Health
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By analyzing existing cross correlation between Jinsanjiang Silicon Material and Mingchen Health Co, you can compare the effects of market volatilities on Jinsanjiang Silicon 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 Jinsanjiang Silicon with a short position of Mingchen Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinsanjiang Silicon and Mingchen Health.
Diversification Opportunities for Jinsanjiang Silicon and Mingchen Health
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinsanjiang and Mingchen is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Jinsanjiang Silicon Material and Mingchen Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mingchen Health and Jinsanjiang Silicon 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 Jinsanjiang Silicon Material 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 Jinsanjiang Silicon i.e., Jinsanjiang Silicon and Mingchen Health go up and down completely randomly.
Pair Corralation between Jinsanjiang Silicon and Mingchen Health
Assuming the 90 days trading horizon Jinsanjiang Silicon is expected to generate 1.07 times less return on investment than Mingchen Health. But when comparing it to its historical volatility, Jinsanjiang Silicon Material is 1.01 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 1,999 in Mingchen Health Co on October 20, 2024 and sell it today you would lose (299.00) from holding Mingchen Health Co or give up 14.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinsanjiang Silicon Material vs. Mingchen Health Co
Performance |
| Timeline |
| Jinsanjiang Silicon |
| Mingchen Health |
Jinsanjiang Silicon and Mingchen Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinsanjiang Silicon and Mingchen Health
The main advantage of trading using opposite Jinsanjiang Silicon and Mingchen Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinsanjiang Silicon 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.The idea behind Jinsanjiang Silicon Material and Mingchen Health Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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