Correlation Between Shanghai Ziyan and Mingchen Health
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By analyzing existing cross correlation between Shanghai Ziyan Foods and Mingchen Health Co, you can compare the effects of market volatilities on Shanghai Ziyan 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 Shanghai Ziyan with a short position of Mingchen Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Ziyan and Mingchen Health.
Diversification Opportunities for Shanghai Ziyan and Mingchen Health
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Mingchen is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Ziyan Foods and Mingchen Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mingchen Health and Shanghai Ziyan 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 Shanghai Ziyan Foods 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 Shanghai Ziyan i.e., Shanghai Ziyan and Mingchen Health go up and down completely randomly.
Pair Corralation between Shanghai Ziyan and Mingchen Health
Assuming the 90 days trading horizon Shanghai Ziyan Foods is expected to under-perform the Mingchen Health. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Ziyan Foods is 1.54 times less risky than Mingchen Health. The stock trades about -0.03 of its potential returns per unit of risk. The Mingchen Health Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,999 in Mingchen Health Co on October 13, 2024 and sell it today you would lose (519.00) from holding Mingchen Health Co or give up 25.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Ziyan Foods vs. Mingchen Health Co
Performance |
| Timeline |
| Shanghai Ziyan Foods |
| Mingchen Health |
Shanghai Ziyan and Mingchen Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Ziyan and Mingchen Health
The main advantage of trading using opposite Shanghai Ziyan and Mingchen Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Ziyan 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.| Shanghai Ziyan vs. Xiamen Bank Co | Shanghai Ziyan vs. Inspur Software Co | Shanghai Ziyan vs. China Everbright Bank | Shanghai Ziyan vs. Jiangsu Financial Leasing |
| Mingchen Health vs. Gan Yuan Foods | Mingchen Health vs. Shanghai Ziyan Foods | Mingchen Health vs. Anji Foodstuff Co | Mingchen Health vs. Zhengzhou Qianweiyangchu Food |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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