Correlation Between Xiamen Goldenhome and Mengtian Home
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By analyzing existing cross correlation between Xiamen Goldenhome Co and Mengtian Home Group, you can compare the effects of market volatilities on Xiamen Goldenhome 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 Xiamen Goldenhome with a short position of Mengtian Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and Mengtian Home.
Diversification Opportunities for Xiamen Goldenhome and Mengtian Home
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiamen and Mengtian is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome 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 Xiamen Goldenhome 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 Xiamen Goldenhome 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 Xiamen Goldenhome i.e., Xiamen Goldenhome and Mengtian Home go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and Mengtian Home
Assuming the 90 days trading horizon Xiamen Goldenhome Co is expected to under-perform the Mengtian Home. But the stock apears to be less risky and, when comparing its historical volatility, Xiamen Goldenhome Co is 1.28 times less risky than Mengtian Home. The stock trades about -0.16 of its potential returns per unit of risk. The Mengtian Home Group is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 1,103 in Mengtian Home Group on November 27, 2024 and sell it today you would earn a total of 97.00 from holding Mengtian Home Group or generate 8.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Goldenhome Co vs. Mengtian Home Group
Performance |
| Timeline |
| Xiamen Goldenhome |
| Mengtian Home Group |
Xiamen Goldenhome and Mengtian Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Goldenhome and Mengtian Home
The main advantage of trading using opposite Xiamen Goldenhome and Mengtian Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome 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.| Xiamen Goldenhome vs. Chison Medical Technologies | Xiamen Goldenhome vs. CareRay Digital Medical | Xiamen Goldenhome vs. Nanjing OLO Home | Xiamen Goldenhome vs. Suofeiya Home Collection |
| Mengtian Home vs. Gan Yuan Foods | Mengtian Home vs. Chengtun Mining Group | Mengtian Home vs. Jiangsu Financial Leasing | Mengtian Home vs. Ningbo Jintian Copper |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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