Correlation Between Eastern Communications and Mingchen Health
Specify exactly 2 symbols:
By analyzing existing cross correlation between Eastern Communications Co and Mingchen Health Co, you can compare the effects of market volatilities on Eastern Communications 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 Eastern Communications with a short position of Mingchen Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Communications and Mingchen Health.
Diversification Opportunities for Eastern Communications and Mingchen Health
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eastern and Mingchen is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Communications 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 Eastern Communications 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 Eastern Communications 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 Eastern Communications i.e., Eastern Communications and Mingchen Health go up and down completely randomly.
Pair Corralation between Eastern Communications and Mingchen Health
Assuming the 90 days trading horizon Eastern Communications Co is expected to under-perform the Mingchen Health. But the stock apears to be less risky and, when comparing its historical volatility, Eastern Communications Co is 1.21 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 1,592 in Mingchen Health Co on September 12, 2024 and sell it today you would lose (18.00) from holding Mingchen Health Co or give up 1.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Communications Co vs. Mingchen Health Co
Performance |
| Timeline |
| Eastern Communications |
| Mingchen Health |
Eastern Communications and Mingchen Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Communications and Mingchen Health
The main advantage of trading using opposite Eastern Communications and Mingchen Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Communications 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.The idea behind Eastern Communications Co and Mingchen Health Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Mingchen Health vs. China Petroleum Chemical | Mingchen Health vs. PetroChina Co Ltd | Mingchen Health vs. China State Construction | Mingchen Health vs. China Railway Group |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Transaction History View history of all your transactions and understand their impact on performance |