Correlation Between China State and Mingchen Health
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By analyzing existing cross correlation between China State Construction and Mingchen Health Co, you can compare the effects of market volatilities on China State 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 China State with a short position of Mingchen Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Mingchen Health.
Diversification Opportunities for China State and Mingchen Health
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Mingchen is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and Mingchen Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mingchen Health and China State 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 China State Construction 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 China State i.e., China State and Mingchen Health go up and down completely randomly.
Pair Corralation between China State and Mingchen Health
Assuming the 90 days trading horizon China State Construction is expected to generate 0.5 times more return on investment than Mingchen Health. However, China State Construction is 1.99 times less risky than Mingchen Health. It trades about 0.03 of its potential returns per unit of risk. Mingchen Health Co is currently generating about 0.01 per unit of risk. If you would invest 520.00 in China State Construction on September 12, 2024 and sell it today you would earn a total of 92.00 from holding China State Construction or generate 17.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Mingchen Health Co
Performance |
| Timeline |
| China State Construction |
| Mingchen Health |
China State and Mingchen Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Mingchen Health
The main advantage of trading using opposite China State and Mingchen Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State 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.| China State vs. Xilinmen Furniture Co | China State vs. Nanjing OLO Home | China State vs. Iat Automobile Technology | China State vs. Fiberhome Telecommunication Technologies |
| Mingchen Health vs. China Petroleum Chemical | Mingchen Health vs. PetroChina Co Ltd | Mingchen Health vs. China State Construction | Mingchen Health vs. China Railway Group |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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