Correlation Between Industrial and Mingchen Health
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By analyzing existing cross correlation between Industrial and Commercial and Mingchen Health Co, you can compare the effects of market volatilities on Industrial 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 Industrial with a short position of Mingchen Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Mingchen Health.
Diversification Opportunities for Industrial and Mingchen Health
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Industrial and Mingchen is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Mingchen Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mingchen Health and Industrial 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 Industrial and Commercial 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 Industrial i.e., Industrial and Mingchen Health go up and down completely randomly.
Pair Corralation between Industrial and Mingchen Health
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.34 times more return on investment than Mingchen Health. However, Industrial and Commercial is 2.93 times less risky than Mingchen Health. It trades about 0.09 of its potential returns per unit of risk. Mingchen Health Co is currently generating about -0.04 per unit of risk. If you would invest 460.00 in Industrial and Commercial on August 29, 2024 and sell it today you would earn a total of 160.00 from holding Industrial and Commercial or generate 34.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Mingchen Health Co
Performance |
| Timeline |
| Industrial and Commercial |
| Mingchen Health |
Industrial and Mingchen Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Mingchen Health
The main advantage of trading using opposite Industrial and Mingchen Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial 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.| Industrial vs. Sinofibers Technology Co | Industrial vs. Saurer Intelligent Technology | Industrial vs. Sinocelltech Group | Industrial vs. Dhc Software Co |
| Mingchen Health vs. PetroChina Co Ltd | Mingchen Health vs. China Mobile Limited | Mingchen Health vs. Ping An Insurance | Mingchen Health vs. China Petroleum 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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