Correlation Between Jahen Household and Mengtian Home
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jahen Household Products and Mengtian Home Group, you can compare the effects of market volatilities on Jahen Household 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 Jahen Household with a short position of Mengtian Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahen Household and Mengtian Home.
Diversification Opportunities for Jahen Household and Mengtian Home
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jahen and Mengtian is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Jahen Household Products 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 Jahen Household 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 Jahen Household Products 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 Jahen Household i.e., Jahen Household and Mengtian Home go up and down completely randomly.
Pair Corralation between Jahen Household and Mengtian Home
Assuming the 90 days trading horizon Jahen Household Products is expected to under-perform the Mengtian Home. In addition to that, Jahen Household is 1.32 times more volatile than Mengtian Home Group. It trades about -0.02 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 1,273 in Mengtian Home Group on September 1, 2024 and sell it today you would lose (178.00) from holding Mengtian Home Group or give up 13.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jahen Household Products vs. Mengtian Home Group
Performance |
| Timeline |
| Jahen Household Products |
| Mengtian Home Group |
Jahen Household and Mengtian Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahen Household and Mengtian Home
The main advantage of trading using opposite Jahen Household and Mengtian Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahen Household 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.| Jahen Household vs. Zijin Mining Group | Jahen Household vs. Wanhua Chemical Group | Jahen Household vs. Baoshan Iron Steel | Jahen Household vs. Shandong Gold Mining |
| Mengtian Home vs. China Publishing Media | Mengtian Home vs. Time Publishing and | Mengtian Home vs. Yingde Greatchem Chemicals | Mengtian Home vs. Focus Media Information |
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.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |