Correlation Between Sungrow Power and Mengtian Home
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By analyzing existing cross correlation between Sungrow Power Supply and Mengtian Home Group, you can compare the effects of market volatilities on Sungrow Power 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 Sungrow Power with a short position of Mengtian Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sungrow Power and Mengtian Home.
Diversification Opportunities for Sungrow Power and Mengtian Home
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sungrow and Mengtian is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Sungrow Power Supply 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 Sungrow Power 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 Sungrow Power Supply 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 Sungrow Power i.e., Sungrow Power and Mengtian Home go up and down completely randomly.
Pair Corralation between Sungrow Power and Mengtian Home
Assuming the 90 days trading horizon Sungrow Power Supply is expected to under-perform the Mengtian Home. In addition to that, Sungrow Power is 1.77 times more volatile than Mengtian Home Group. It trades about -0.21 of its total potential returns per unit of risk. Mengtian Home Group is currently generating about 0.13 per unit of volatility. If you would invest 1,050 in Mengtian Home Group on September 12, 2024 and sell it today you would earn a total of 39.00 from holding Mengtian Home Group or generate 3.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sungrow Power Supply vs. Mengtian Home Group
Performance |
| Timeline |
| Sungrow Power Supply |
| Mengtian Home Group |
Sungrow Power and Mengtian Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sungrow Power and Mengtian Home
The main advantage of trading using opposite Sungrow Power and Mengtian Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sungrow Power 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.| Sungrow Power vs. Huafa Industrial Co | Sungrow Power vs. Hengdian Entertainment Co | Sungrow Power vs. Shuhua Sports Co | Sungrow Power vs. Sichuan Yahua Industrial |
| Mengtian Home vs. Lutian Machinery Co | Mengtian Home vs. PetroChina Co Ltd | Mengtian Home vs. Bank of China | Mengtian Home vs. Gansu Jiu Steel |
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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