Correlation Between Zhejiang JIULI and Mengtian Home
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By analyzing existing cross correlation between Zhejiang JIULI Hi tech and Mengtian Home Group, you can compare the effects of market volatilities on Zhejiang JIULI 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 Zhejiang JIULI with a short position of Mengtian Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang JIULI and Mengtian Home.
Diversification Opportunities for Zhejiang JIULI and Mengtian Home
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and Mengtian is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang JIULI Hi tech 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 Zhejiang JIULI 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 Zhejiang JIULI Hi tech 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 Zhejiang JIULI i.e., Zhejiang JIULI and Mengtian Home go up and down completely randomly.
Pair Corralation between Zhejiang JIULI and Mengtian Home
Assuming the 90 days trading horizon Zhejiang JIULI is expected to generate 2.51 times less return on investment than Mengtian Home. In addition to that, Zhejiang JIULI is 1.06 times more volatile than Mengtian Home Group. It trades about 0.04 of its total potential returns per unit of risk. Mengtian Home Group is currently generating about 0.09 per unit of volatility. If you would invest 1,050 in Mengtian Home Group on August 29, 2024 and sell it today you would earn a total of 34.00 from holding Mengtian Home Group or generate 3.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang JIULI Hi tech vs. Mengtian Home Group
Performance |
| Timeline |
| Zhejiang JIULI Hi |
| Mengtian Home Group |
Zhejiang JIULI and Mengtian Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang JIULI and Mengtian Home
The main advantage of trading using opposite Zhejiang JIULI and Mengtian Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang JIULI 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.| Zhejiang JIULI vs. Shaanxi Broadcast TV | Zhejiang JIULI vs. Anhui Transport Consulting | Zhejiang JIULI vs. Longjian Road Bridge | Zhejiang JIULI vs. King Strong New Material |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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