Correlation Between Yunnan Jianzhijia and Mingchen Health
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By analyzing existing cross correlation between Yunnan Jianzhijia Health Chain and Mingchen Health Co, you can compare the effects of market volatilities on Yunnan Jianzhijia 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 Yunnan Jianzhijia with a short position of Mingchen Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Jianzhijia and Mingchen Health.
Diversification Opportunities for Yunnan Jianzhijia and Mingchen Health
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Yunnan and Mingchen is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Jianzhijia Health Chain and Mingchen Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mingchen Health and Yunnan Jianzhijia 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 Yunnan Jianzhijia Health Chain 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 Yunnan Jianzhijia i.e., Yunnan Jianzhijia and Mingchen Health go up and down completely randomly.
Pair Corralation between Yunnan Jianzhijia and Mingchen Health
Assuming the 90 days trading horizon Yunnan Jianzhijia Health Chain is expected to under-perform the Mingchen Health. But the stock apears to be less risky and, when comparing its historical volatility, Yunnan Jianzhijia Health Chain is 1.29 times less risky than Mingchen Health. The stock trades about -0.04 of its potential returns per unit of risk. The Mingchen Health Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,993 in Mingchen Health Co on November 2, 2024 and sell it today you would lose (354.00) from holding Mingchen Health Co or give up 17.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Jianzhijia Health Chain vs. Mingchen Health Co
Performance |
| Timeline |
| Yunnan Jianzhijia |
| Mingchen Health |
Yunnan Jianzhijia and Mingchen Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Jianzhijia and Mingchen Health
The main advantage of trading using opposite Yunnan Jianzhijia and Mingchen Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Jianzhijia 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.| Yunnan Jianzhijia vs. Nanjing Putian Telecommunications | Yunnan Jianzhijia vs. RoadMain T Co | Yunnan Jianzhijia vs. China Satellite Communications | Yunnan Jianzhijia vs. Hainan Haiqi Transportation |
| Mingchen Health vs. Nanjing Putian Telecommunications | Mingchen Health vs. Guangxi Wuzhou Communications | Mingchen Health vs. Nanxing Furniture Machinery | Mingchen Health vs. Bank of Communications |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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