Correlation Between Dongnan Electronics and Mingchen Health
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By analyzing existing cross correlation between Dongnan Electronics Co and Mingchen Health Co, you can compare the effects of market volatilities on Dongnan Electronics 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 Dongnan Electronics with a short position of Mingchen Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongnan Electronics and Mingchen Health.
Diversification Opportunities for Dongnan Electronics and Mingchen Health
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dongnan and Mingchen is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Dongnan Electronics 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 Dongnan Electronics 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 Dongnan Electronics 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 Dongnan Electronics i.e., Dongnan Electronics and Mingchen Health go up and down completely randomly.
Pair Corralation between Dongnan Electronics and Mingchen Health
Assuming the 90 days trading horizon Dongnan Electronics Co is expected to generate 1.41 times more return on investment than Mingchen Health. However, Dongnan Electronics is 1.41 times more volatile than Mingchen Health Co. It trades about 0.15 of its potential returns per unit of risk. Mingchen Health Co is currently generating about 0.17 per unit of risk. If you would invest 1,835 in Dongnan Electronics Co on September 12, 2024 and sell it today you would earn a total of 733.00 from holding Dongnan Electronics Co or generate 39.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongnan Electronics Co vs. Mingchen Health Co
Performance |
| Timeline |
| Dongnan Electronics |
| Mingchen Health |
Dongnan Electronics and Mingchen Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongnan Electronics and Mingchen Health
The main advantage of trading using opposite Dongnan Electronics and Mingchen Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongnan Electronics 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.| Dongnan Electronics vs. Mingchen Health Co | Dongnan Electronics vs. Shenzhen Silver Basis | Dongnan Electronics vs. Lotus Health Group | Dongnan Electronics vs. Hangzhou Coco Healthcare |
| Mingchen Health vs. Agricultural Bank of | Mingchen Health vs. Industrial and Commercial | Mingchen Health vs. Bank of China | Mingchen Health vs. PetroChina Co Ltd |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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