Correlation Between Mango Excellent and New China
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By analyzing existing cross correlation between Mango Excellent Media and New China Life, you can compare the effects of market volatilities on Mango Excellent and New China 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 Mango Excellent with a short position of New China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mango Excellent and New China.
Diversification Opportunities for Mango Excellent and New China
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mango and New is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Mango Excellent Media and New China Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New China Life and Mango Excellent 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 Mango Excellent Media are associated (or correlated) with New China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New China Life has no effect on the direction of Mango Excellent i.e., Mango Excellent and New China go up and down completely randomly.
Pair Corralation between Mango Excellent and New China
Assuming the 90 days trading horizon Mango Excellent Media is expected to generate 0.7 times more return on investment than New China. However, Mango Excellent Media is 1.43 times less risky than New China. It trades about 0.22 of its potential returns per unit of risk. New China Life is currently generating about -0.01 per unit of risk. If you would invest 2,572 in Mango Excellent Media on September 3, 2024 and sell it today you would earn a total of 310.00 from holding Mango Excellent Media or generate 12.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mango Excellent Media vs. New China Life
Performance |
| Timeline |
| Mango Excellent Media |
| New China Life |
Mango Excellent and New China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mango Excellent and New China
The main advantage of trading using opposite Mango Excellent and New China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mango Excellent position performs unexpectedly, New China 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 New China will offset losses from the drop in New China's long position.| Mango Excellent vs. PetroChina Co Ltd | Mango Excellent vs. China Mobile Limited | Mango Excellent vs. Industrial and Commercial | Mango Excellent vs. China Life Insurance |
| New China vs. Dongguan Tarry Electronics | New China vs. TongFu Microelectronics Co | New China vs. Tibet Huayu Mining | New China vs. JCHX Mining 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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