Correlation Between Eastroc Beverage and Mingchen Health
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By analyzing existing cross correlation between Eastroc Beverage Group and Mingchen Health Co, you can compare the effects of market volatilities on Eastroc Beverage 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 Eastroc Beverage with a short position of Mingchen Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Mingchen Health.
Diversification Opportunities for Eastroc Beverage and Mingchen Health
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eastroc and Mingchen is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Mingchen Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mingchen Health and Eastroc Beverage 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 Eastroc Beverage Group 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 Eastroc Beverage i.e., Eastroc Beverage and Mingchen Health go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Mingchen Health
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to under-perform the Mingchen Health. But the stock apears to be less risky and, when comparing its historical volatility, Eastroc Beverage Group is 1.31 times less risky than Mingchen Health. The stock trades about -0.01 of its potential returns per unit of risk. The Mingchen Health Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,677 in Mingchen Health Co on October 28, 2024 and sell it today you would earn a total of 6.00 from holding Mingchen Health Co or generate 0.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastroc Beverage Group vs. Mingchen Health Co
Performance |
| Timeline |
| Eastroc Beverage |
| Mingchen Health |
Eastroc Beverage and Mingchen Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Mingchen Health
The main advantage of trading using opposite Eastroc Beverage and Mingchen Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage 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.| Eastroc Beverage vs. Agricultural Bank of | Eastroc Beverage vs. Industrial and Commercial | Eastroc Beverage vs. Bank of China | Eastroc Beverage vs. China Construction Bank |
| 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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