Correlation Between Mingchen Health and Dook Media
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By analyzing existing cross correlation between Mingchen Health Co and Dook Media Group, you can compare the effects of market volatilities on Mingchen Health and Dook Media 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 Dook Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mingchen Health and Dook Media.
Diversification Opportunities for Mingchen Health and Dook Media
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mingchen and Dook is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Mingchen Health Co and Dook Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dook Media Group 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 Dook Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dook Media Group has no effect on the direction of Mingchen Health i.e., Mingchen Health and Dook Media go up and down completely randomly.
Pair Corralation between Mingchen Health and Dook Media
Assuming the 90 days trading horizon Mingchen Health is expected to generate 1.1 times less return on investment than Dook Media. But when comparing it to its historical volatility, Mingchen Health Co is 1.23 times less risky than Dook Media. It trades about 0.21 of its potential returns per unit of risk. Dook Media Group is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 793.00 in Dook Media Group on September 16, 2024 and sell it today you would earn a total of 423.00 from holding Dook Media Group or generate 53.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Mingchen Health Co vs. Dook Media Group
Performance |
Timeline |
Mingchen Health |
Dook Media Group |
Mingchen Health and Dook Media Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mingchen Health and Dook Media
The main advantage of trading using opposite Mingchen Health and Dook Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mingchen Health position performs unexpectedly, Dook Media 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 Dook Media will offset losses from the drop in Dook Media's long position.Mingchen Health vs. Dook Media Group | Mingchen Health vs. Threes Company Media | Mingchen Health vs. Guangzhou Jinyi Media | Mingchen Health vs. Zhejiang Daily Media |
Dook Media vs. Ming Yang Smart | Dook Media vs. 159681 | Dook Media vs. 159005 | Dook Media 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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