Correlation Between Nantong Haixing and Mingchen Health
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By analyzing existing cross correlation between Nantong Haixing Electronics and Mingchen Health Co, you can compare the effects of market volatilities on Nantong Haixing 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 Nantong Haixing with a short position of Mingchen Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nantong Haixing and Mingchen Health.
Diversification Opportunities for Nantong Haixing and Mingchen Health
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nantong and Mingchen is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Nantong Haixing Electronics and Mingchen Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mingchen Health and Nantong Haixing 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 Nantong Haixing Electronics 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 Nantong Haixing i.e., Nantong Haixing and Mingchen Health go up and down completely randomly.
Pair Corralation between Nantong Haixing and Mingchen Health
Assuming the 90 days trading horizon Nantong Haixing Electronics is expected to generate 0.65 times more return on investment than Mingchen Health. However, Nantong Haixing Electronics is 1.53 times less risky than Mingchen Health. It trades about 0.08 of its potential returns per unit of risk. Mingchen Health Co is currently generating about 0.02 per unit of risk. If you would invest 939.00 in Nantong Haixing Electronics on November 1, 2024 and sell it today you would earn a total of 417.00 from holding Nantong Haixing Electronics or generate 44.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nantong Haixing Electronics vs. Mingchen Health Co
Performance |
| Timeline |
| Nantong Haixing Elec |
| Mingchen Health |
Nantong Haixing and Mingchen Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nantong Haixing and Mingchen Health
The main advantage of trading using opposite Nantong Haixing and Mingchen Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nantong Haixing 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.| Nantong Haixing vs. Chengtun Mining Group | Nantong Haixing vs. Zhengzhou Coal Mining | Nantong Haixing vs. Uroica Mining Safety | Nantong Haixing vs. Guangdong Silvere Sci |
| Mingchen Health vs. Allmed Medical Products | Mingchen Health vs. Guangzhou Dongfang Hotel | Mingchen Health vs. Youngy Health Co | Mingchen Health vs. Aier Eye Hospital |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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