Correlation Between Xilinmen Furniture and Mengtian Home
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By analyzing existing cross correlation between Xilinmen Furniture Co and Mengtian Home Group, you can compare the effects of market volatilities on Xilinmen Furniture 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 Xilinmen Furniture with a short position of Mengtian Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xilinmen Furniture and Mengtian Home.
Diversification Opportunities for Xilinmen Furniture and Mengtian Home
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xilinmen and Mengtian is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Xilinmen Furniture Co 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 Xilinmen Furniture 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 Xilinmen Furniture Co 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 Xilinmen Furniture i.e., Xilinmen Furniture and Mengtian Home go up and down completely randomly.
Pair Corralation between Xilinmen Furniture and Mengtian Home
Assuming the 90 days trading horizon Xilinmen Furniture Co is expected to under-perform the Mengtian Home. But the stock apears to be less risky and, when comparing its historical volatility, Xilinmen Furniture Co is 1.08 times less risky than Mengtian Home. The stock trades about -0.04 of its potential returns per unit of risk. The Mengtian Home Group is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,403 in Mengtian Home Group on November 29, 2024 and sell it today you would lose (199.00) from holding Mengtian Home Group or give up 14.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Xilinmen Furniture Co vs. Mengtian Home Group
Performance |
| Timeline |
| Xilinmen Furniture |
| Mengtian Home Group |
Xilinmen Furniture and Mengtian Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xilinmen Furniture and Mengtian Home
The main advantage of trading using opposite Xilinmen Furniture and Mengtian Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xilinmen Furniture 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.| Xilinmen Furniture vs. Jinling Hotel Corp | Xilinmen Furniture vs. Nanya New Material | Xilinmen Furniture vs. Songz Automobile Air | Xilinmen Furniture vs. Super Dragon Engineering Plastics |
| Mengtian Home vs. Konfoong Materials International | Mengtian Home vs. China National Software | Mengtian Home vs. Advanced Technology 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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