Correlation Between Western Metal and Mengtian Home
Specify exactly 2 symbols:
By analyzing existing cross correlation between Western Metal Materials and Mengtian Home Group, you can compare the effects of market volatilities on Western Metal 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 Western Metal with a short position of Mengtian Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Metal and Mengtian Home.
Diversification Opportunities for Western Metal and Mengtian Home
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Western and Mengtian is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Western Metal Materials 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 Western Metal 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 Western Metal Materials 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 Western Metal i.e., Western Metal and Mengtian Home go up and down completely randomly.
Pair Corralation between Western Metal and Mengtian Home
Assuming the 90 days trading horizon Western Metal Materials is expected to generate 0.97 times more return on investment than Mengtian Home. However, Western Metal Materials is 1.03 times less risky than Mengtian Home. It trades about 0.01 of its potential returns per unit of risk. Mengtian Home Group is currently generating about -0.01 per unit of risk. If you would invest 1,654 in Western Metal Materials on October 11, 2024 and sell it today you would lose (28.00) from holding Western Metal Materials or give up 1.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Metal Materials vs. Mengtian Home Group
Performance |
| Timeline |
| Western Metal Materials |
| Mengtian Home Group |
Western Metal and Mengtian Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Metal and Mengtian Home
The main advantage of trading using opposite Western Metal and Mengtian Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Metal 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.| Western Metal vs. Qingdao Choho Industrial | Western Metal vs. Anhui Jinhe Industrial | Western Metal vs. Gem Year Industrial Co | Western Metal vs. Beijing Shunxin Agriculture |
| Mengtian Home vs. Guangzhou Tinci Materials | Mengtian Home vs. Jilin OLED Material | Mengtian Home vs. Ningxia Building Materials | Mengtian Home vs. Western Metal Materials |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |