Correlation Between Guangzhou Haige and Mengtian Home
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By analyzing existing cross correlation between Guangzhou Haige Communications and Mengtian Home Group, you can compare the effects of market volatilities on Guangzhou Haige 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 Guangzhou Haige with a short position of Mengtian Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Mengtian Home.
Diversification Opportunities for Guangzhou Haige and Mengtian Home
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guangzhou and Mengtian is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications 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 Guangzhou Haige 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 Guangzhou Haige Communications 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 Guangzhou Haige i.e., Guangzhou Haige and Mengtian Home go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Mengtian Home
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to generate 0.45 times more return on investment than Mengtian Home. However, Guangzhou Haige Communications is 2.2 times less risky than Mengtian Home. It trades about -0.48 of its potential returns per unit of risk. Mengtian Home Group is currently generating about -0.3 per unit of risk. If you would invest 1,221 in Guangzhou Haige Communications on October 14, 2024 and sell it today you would lose (220.00) from holding Guangzhou Haige Communications or give up 18.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Mengtian Home Group
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Mengtian Home Group |
Guangzhou Haige and Mengtian Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Mengtian Home
The main advantage of trading using opposite Guangzhou Haige and Mengtian Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige 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.| Guangzhou Haige vs. Uroica Mining Safety | Guangzhou Haige vs. ButOne Information Corp | Guangzhou Haige vs. Zhengzhou Coal Mining | Guangzhou Haige vs. Longmaster Information Tech |
| Mengtian Home vs. Anhui Shiny Electronic | Mengtian Home vs. Harvest Fund Management | Mengtian Home vs. Beijing YanDong MicroElectronic | Mengtian Home vs. Cicc Fund Management |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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