Correlation Between Guangzhou Tinci and Mengtian Home
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By analyzing existing cross correlation between Guangzhou Tinci Materials and Mengtian Home Group, you can compare the effects of market volatilities on Guangzhou Tinci 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 Tinci with a short position of Mengtian Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and Mengtian Home.
Diversification Opportunities for Guangzhou Tinci and Mengtian Home
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangzhou and Mengtian is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Tinci 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 Guangzhou Tinci 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 Tinci 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 Guangzhou Tinci i.e., Guangzhou Tinci and Mengtian Home go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and Mengtian Home
Assuming the 90 days trading horizon Guangzhou Tinci Materials is expected to under-perform the Mengtian Home. In addition to that, Guangzhou Tinci is 1.15 times more volatile than Mengtian Home Group. It trades about -0.05 of its total potential returns per unit of risk. Mengtian Home Group is currently generating about -0.01 per unit of volatility. If you would invest 1,359 in Mengtian Home Group on October 11, 2024 and sell it today you would lose (279.00) from holding Mengtian Home Group or give up 20.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Tinci Materials vs. Mengtian Home Group
Performance |
| Timeline |
| Guangzhou Tinci Materials |
| Mengtian Home Group |
Guangzhou Tinci and Mengtian Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Tinci and Mengtian Home
The main advantage of trading using opposite Guangzhou Tinci and Mengtian Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci 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 Tinci vs. Xiandai Investment Co | Guangzhou Tinci vs. Luyin Investment Group | Guangzhou Tinci vs. Henan Shuanghui Investment | Guangzhou Tinci vs. Hangzhou Pinming Software |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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