Correlation Between Mango Excellent and Hengdian Entertainment
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By analyzing existing cross correlation between Mango Excellent Media and Hengdian Entertainment Co, you can compare the effects of market volatilities on Mango Excellent and Hengdian Entertainment 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 Hengdian Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mango Excellent and Hengdian Entertainment.
Diversification Opportunities for Mango Excellent and Hengdian Entertainment
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mango and Hengdian is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Mango Excellent Media and Hengdian Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengdian Entertainment 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 Hengdian Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengdian Entertainment has no effect on the direction of Mango Excellent i.e., Mango Excellent and Hengdian Entertainment go up and down completely randomly.
Pair Corralation between Mango Excellent and Hengdian Entertainment
Assuming the 90 days trading horizon Mango Excellent is expected to generate 1.55 times less return on investment than Hengdian Entertainment. But when comparing it to its historical volatility, Mango Excellent Media is 1.8 times less risky than Hengdian Entertainment. It trades about 0.22 of its potential returns per unit of risk. Hengdian Entertainment Co is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,260 in Hengdian Entertainment Co on September 3, 2024 and sell it today you would earn a total of 227.00 from holding Hengdian Entertainment Co or generate 18.02% 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. Hengdian Entertainment Co
Performance |
| Timeline |
| Mango Excellent Media |
| Hengdian Entertainment |
Mango Excellent and Hengdian Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mango Excellent and Hengdian Entertainment
The main advantage of trading using opposite Mango Excellent and Hengdian Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mango Excellent position performs unexpectedly, Hengdian Entertainment 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 Hengdian Entertainment will offset losses from the drop in Hengdian Entertainment'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 |
| Hengdian Entertainment vs. Gansu Jiu Steel | Hengdian Entertainment vs. Ming Yang Smart | Hengdian Entertainment vs. Aba Chemicals Corp | Hengdian Entertainment vs. Loctek Ergonomic Technology |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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