Correlation Between Allgens Medical and Mingchen Health
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By analyzing existing cross correlation between Allgens Medical Technology and Mingchen Health Co, you can compare the effects of market volatilities on Allgens Medical 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 Allgens Medical with a short position of Mingchen Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allgens Medical and Mingchen Health.
Diversification Opportunities for Allgens Medical and Mingchen Health
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Allgens and Mingchen is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Allgens Medical Technology and Mingchen Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mingchen Health and Allgens Medical 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 Allgens Medical Technology 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 Allgens Medical i.e., Allgens Medical and Mingchen Health go up and down completely randomly.
Pair Corralation between Allgens Medical and Mingchen Health
Assuming the 90 days trading horizon Allgens Medical is expected to generate 5.54 times less return on investment than Mingchen Health. But when comparing it to its historical volatility, Allgens Medical Technology is 1.52 times less risky than Mingchen Health. It trades about 0.03 of its potential returns per unit of risk. Mingchen Health Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,432 in Mingchen Health Co on October 19, 2024 and sell it today you would earn a total of 268.00 from holding Mingchen Health Co or generate 18.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allgens Medical Technology vs. Mingchen Health Co
Performance |
| Timeline |
| Allgens Medical Tech |
| Mingchen Health |
Allgens Medical and Mingchen Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allgens Medical and Mingchen Health
The main advantage of trading using opposite Allgens Medical and Mingchen Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allgens Medical 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.| Allgens Medical vs. Guangdong Jinma Entertainment | Allgens Medical vs. North Copper Shanxi | Allgens Medical vs. Zhengzhou Coal Mining | Allgens Medical vs. Shanghai Xinhua Media |
| Mingchen Health vs. Longmaster Information Tech | Mingchen Health vs. Jinsanjiang Silicon Material | Mingchen Health vs. Sharetronic Data Technology | Mingchen Health vs. Orinko Advanced Plastics |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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