Correlation Between Mengtian Home and Ningbo Ligong
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By analyzing existing cross correlation between Mengtian Home Group and Ningbo Ligong Online, you can compare the effects of market volatilities on Mengtian Home and Ningbo Ligong 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 Mengtian Home with a short position of Ningbo Ligong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mengtian Home and Ningbo Ligong.
Diversification Opportunities for Mengtian Home and Ningbo Ligong
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mengtian and Ningbo is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Mengtian Home Group and Ningbo Ligong Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Ligong Online and Mengtian Home 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 Mengtian Home Group are associated (or correlated) with Ningbo Ligong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Ligong Online has no effect on the direction of Mengtian Home i.e., Mengtian Home and Ningbo Ligong go up and down completely randomly.
Pair Corralation between Mengtian Home and Ningbo Ligong
Assuming the 90 days trading horizon Mengtian Home is expected to generate 10.4 times less return on investment than Ningbo Ligong. In addition to that, Mengtian Home is 1.09 times more volatile than Ningbo Ligong Online. It trades about 0.0 of its total potential returns per unit of risk. Ningbo Ligong Online is currently generating about 0.04 per unit of volatility. If you would invest 1,059 in Ningbo Ligong Online on November 27, 2024 and sell it today you would earn a total of 360.00 from holding Ningbo Ligong Online or generate 33.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mengtian Home Group vs. Ningbo Ligong Online
Performance |
| Timeline |
| Mengtian Home Group |
| Ningbo Ligong Online |
Mengtian Home and Ningbo Ligong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mengtian Home and Ningbo Ligong
The main advantage of trading using opposite Mengtian Home and Ningbo Ligong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mengtian Home position performs unexpectedly, Ningbo Ligong 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 Ningbo Ligong will offset losses from the drop in Ningbo Ligong's long position.| Mengtian Home vs. Gan Yuan Foods | Mengtian Home vs. Chengtun Mining Group | Mengtian Home vs. Jiangsu Financial Leasing | Mengtian Home vs. Ningbo Jintian Copper |
| Ningbo Ligong vs. Ningbo Kangqiang Electronics | Ningbo Ligong vs. Jiangxi Naipu Mining | Ningbo Ligong vs. Jinhui Mining Co | Ningbo Ligong vs. Chengtun Mining Group |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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