Correlation Between Xinya Electronic and Mingchen Health
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By analyzing existing cross correlation between Xinya Electronic Co and Mingchen Health Co, you can compare the effects of market volatilities on Xinya Electronic 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 Xinya Electronic with a short position of Mingchen Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinya Electronic and Mingchen Health.
Diversification Opportunities for Xinya Electronic and Mingchen Health
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinya and Mingchen is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Xinya Electronic Co and Mingchen Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mingchen Health and Xinya Electronic 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 Xinya Electronic Co 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 Xinya Electronic i.e., Xinya Electronic and Mingchen Health go up and down completely randomly.
Pair Corralation between Xinya Electronic and Mingchen Health
Assuming the 90 days trading horizon Xinya Electronic Co is expected to generate 1.13 times more return on investment than Mingchen Health. However, Xinya Electronic is 1.13 times more volatile than Mingchen Health Co. It trades about 0.23 of its potential returns per unit of risk. Mingchen Health Co is currently generating about 0.06 per unit of risk. If you would invest 1,348 in Xinya Electronic Co on October 28, 2024 and sell it today you would earn a total of 646.00 from holding Xinya Electronic Co or generate 47.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinya Electronic Co vs. Mingchen Health Co
Performance |
| Timeline |
| Xinya Electronic |
| Mingchen Health |
Xinya Electronic and Mingchen Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinya Electronic and Mingchen Health
The main advantage of trading using opposite Xinya Electronic and Mingchen Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinya Electronic 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.| Xinya Electronic vs. Industrial and Commercial | Xinya Electronic vs. China Construction Bank | Xinya Electronic vs. Bank of China | Xinya Electronic vs. Agricultural Bank of |
| Mingchen Health vs. Ming Yang Smart | Mingchen Health vs. 159681 | Mingchen Health vs. 159005 | Mingchen Health vs. Loctek Ergonomic Technology |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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