Correlation Between China Securities and Mengtian Home
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By analyzing existing cross correlation between China Securities 800 and Mengtian Home Group, you can compare the effects of market volatilities on China Securities and Mengtian Home 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 China Securities with a short position of Mengtian Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Mengtian Home.
Diversification Opportunities for China Securities and Mengtian Home
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Mengtian is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Mengtian Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mengtian Home Group and China Securities 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 China Securities 800 are associated (or correlated) with Mengtian Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mengtian Home Group has no effect on the direction of China Securities i.e., China Securities and Mengtian Home go up and down completely randomly.
Pair Corralation between China Securities and Mengtian Home
Assuming the 90 days trading horizon China Securities is expected to generate 1.03 times less return on investment than Mengtian Home. But when comparing it to its historical volatility, China Securities 800 is 1.15 times less risky than Mengtian Home. It trades about 0.05 of its potential returns per unit of risk. Mengtian Home Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 990.00 in Mengtian Home Group on August 29, 2024 and sell it today you would earn a total of 88.00 from holding Mengtian Home Group or generate 8.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Mengtian Home Group
Performance |
| Timeline |
China Securities and Mengtian Home Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Mengtian Home Group
Pair trading matchups for Mengtian Home
Pair Trading with China Securities and Mengtian Home
The main advantage of trading using opposite China Securities and Mengtian Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Mengtian Home 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 Mengtian Home will offset losses from the drop in Mengtian Home's long position.| China Securities vs. Tibet Huayu Mining | China Securities vs. Keeson Technology Corp | China Securities vs. OBiO Technology Corp | China Securities vs. ROPEOK Technology Group |
| Mengtian Home vs. Agricultural Bank of | Mengtian Home vs. Industrial and Commercial | Mengtian Home vs. Bank of China | Mengtian Home vs. China Construction Bank |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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