Correlation Between Mingchen Health and Hubei Geoway
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By analyzing existing cross correlation between Mingchen Health Co and Hubei Geoway Investment, you can compare the effects of market volatilities on Mingchen Health and Hubei Geoway 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 Mingchen Health with a short position of Hubei Geoway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mingchen Health and Hubei Geoway.
Diversification Opportunities for Mingchen Health and Hubei Geoway
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mingchen and Hubei is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Mingchen Health Co and Hubei Geoway Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Geoway Investment and Mingchen Health 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 Mingchen Health Co are associated (or correlated) with Hubei Geoway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Geoway Investment has no effect on the direction of Mingchen Health i.e., Mingchen Health and Hubei Geoway go up and down completely randomly.
Pair Corralation between Mingchen Health and Hubei Geoway
Assuming the 90 days trading horizon Mingchen Health Co is expected to generate 1.16 times more return on investment than Hubei Geoway. However, Mingchen Health is 1.16 times more volatile than Hubei Geoway Investment. It trades about 0.23 of its potential returns per unit of risk. Hubei Geoway Investment is currently generating about 0.15 per unit of risk. If you would invest 1,238 in Mingchen Health Co on September 18, 2024 and sell it today you would earn a total of 682.00 from holding Mingchen Health Co or generate 55.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Mingchen Health Co vs. Hubei Geoway Investment
Performance |
Timeline |
Mingchen Health |
Hubei Geoway Investment |
Mingchen Health and Hubei Geoway Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mingchen Health and Hubei Geoway
The main advantage of trading using opposite Mingchen Health and Hubei Geoway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mingchen Health position performs unexpectedly, Hubei Geoway 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 Hubei Geoway will offset losses from the drop in Hubei Geoway's long position.Mingchen Health vs. Agricultural Bank of | Mingchen Health vs. Industrial and Commercial | Mingchen Health vs. Bank of China | Mingchen Health vs. PetroChina Co Ltd |
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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.
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