Correlation Between Yangmei Chemical and Hangzhou Minsheng
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By analyzing existing cross correlation between Yangmei Chemical Co and Hangzhou Minsheng Healthcare, you can compare the effects of market volatilities on Yangmei Chemical and Hangzhou Minsheng 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 Yangmei Chemical with a short position of Hangzhou Minsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yangmei Chemical and Hangzhou Minsheng.
Diversification Opportunities for Yangmei Chemical and Hangzhou Minsheng
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yangmei and Hangzhou is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Yangmei Chemical Co and Hangzhou Minsheng Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Minsheng and Yangmei Chemical 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 Yangmei Chemical Co are associated (or correlated) with Hangzhou Minsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Minsheng has no effect on the direction of Yangmei Chemical i.e., Yangmei Chemical and Hangzhou Minsheng go up and down completely randomly.
Pair Corralation between Yangmei Chemical and Hangzhou Minsheng
Assuming the 90 days trading horizon Yangmei Chemical Co is expected to generate 0.84 times more return on investment than Hangzhou Minsheng. However, Yangmei Chemical Co is 1.19 times less risky than Hangzhou Minsheng. It trades about 0.0 of its potential returns per unit of risk. Hangzhou Minsheng Healthcare is currently generating about -0.06 per unit of risk. If you would invest 312.00 in Yangmei Chemical Co on September 12, 2024 and sell it today you would lose (33.00) from holding Yangmei Chemical Co or give up 10.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 96.52% |
| Values | Daily Returns |
Yangmei Chemical Co vs. Hangzhou Minsheng Healthcare
Performance |
| Timeline |
| Yangmei Chemical |
| Hangzhou Minsheng |
Yangmei Chemical and Hangzhou Minsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yangmei Chemical and Hangzhou Minsheng
The main advantage of trading using opposite Yangmei Chemical and Hangzhou Minsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yangmei Chemical position performs unexpectedly, Hangzhou Minsheng 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 Hangzhou Minsheng will offset losses from the drop in Hangzhou Minsheng's long position.| Yangmei Chemical vs. Zijin Mining Group | Yangmei Chemical vs. Wanhua Chemical Group | Yangmei Chemical vs. Baoshan Iron Steel | Yangmei Chemical vs. Rongsheng Petrochemical Co |
| Hangzhou Minsheng vs. Liaoning Dingjide Petrochemical | Hangzhou Minsheng vs. Yangmei Chemical Co | Hangzhou Minsheng vs. Caihong Display Devices | Hangzhou Minsheng vs. Ningbo Bohui Chemical |
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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