Correlation Between Mengtian Home and Yunnan Jianzhijia
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By analyzing existing cross correlation between Mengtian Home Group and Yunnan Jianzhijia Health Chain, you can compare the effects of market volatilities on Mengtian Home and Yunnan Jianzhijia 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 Mengtian Home with a short position of Yunnan Jianzhijia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mengtian Home and Yunnan Jianzhijia.
Diversification Opportunities for Mengtian Home and Yunnan Jianzhijia
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mengtian and Yunnan is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Mengtian Home Group and Yunnan Jianzhijia Health Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Jianzhijia and Mengtian Home 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 Mengtian Home Group are associated (or correlated) with Yunnan Jianzhijia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Jianzhijia has no effect on the direction of Mengtian Home i.e., Mengtian Home and Yunnan Jianzhijia go up and down completely randomly.
Pair Corralation between Mengtian Home and Yunnan Jianzhijia
Assuming the 90 days trading horizon Mengtian Home Group is expected to generate 0.63 times more return on investment than Yunnan Jianzhijia. However, Mengtian Home Group is 1.59 times less risky than Yunnan Jianzhijia. It trades about 0.28 of its potential returns per unit of risk. Yunnan Jianzhijia Health Chain is currently generating about 0.13 per unit of risk. If you would invest 1,014 in Mengtian Home Group on December 11, 2024 and sell it today you would earn a total of 177.00 from holding Mengtian Home Group or generate 17.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Mengtian Home Group vs. Yunnan Jianzhijia Health Chain
Performance |
Timeline |
Mengtian Home Group |
Yunnan Jianzhijia |
Mengtian Home and Yunnan Jianzhijia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mengtian Home and Yunnan Jianzhijia
The main advantage of trading using opposite Mengtian Home and Yunnan Jianzhijia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mengtian Home position performs unexpectedly, Yunnan Jianzhijia 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 Yunnan Jianzhijia will offset losses from the drop in Yunnan Jianzhijia's long position.Mengtian Home vs. Xiangpiaopiao Food Co | Mengtian Home vs. Eit Environmental Development | Mengtian Home vs. GreenTech Environmental Co | Mengtian Home vs. Muyuan Foodstuff Co |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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