Correlation Between Mengtian Home and Do Fluoride
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By analyzing existing cross correlation between Mengtian Home Group and Do Fluoride Chemicals Co, you can compare the effects of market volatilities on Mengtian Home and Do Fluoride 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 Do Fluoride. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mengtian Home and Do Fluoride.
Diversification Opportunities for Mengtian Home and Do Fluoride
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mengtian and 002407 is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Mengtian Home Group and Do Fluoride Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Do Fluoride Chemicals 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 Do Fluoride. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Do Fluoride Chemicals has no effect on the direction of Mengtian Home i.e., Mengtian Home and Do Fluoride go up and down completely randomly.
Pair Corralation between Mengtian Home and Do Fluoride
Assuming the 90 days trading horizon Mengtian Home Group is expected to generate 2.19 times more return on investment than Do Fluoride. However, Mengtian Home is 2.19 times more volatile than Do Fluoride Chemicals Co. It trades about 0.02 of its potential returns per unit of risk. Do Fluoride Chemicals Co is currently generating about -0.2 per unit of risk. If you would invest 1,095 in Mengtian Home Group on October 30, 2024 and sell it today you would earn a total of 8.00 from holding Mengtian Home Group or generate 0.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mengtian Home Group vs. Do Fluoride Chemicals Co
Performance |
| Timeline |
| Mengtian Home Group |
| Do Fluoride Chemicals |
Mengtian Home and Do Fluoride Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mengtian Home and Do Fluoride
The main advantage of trading using opposite Mengtian Home and Do Fluoride positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mengtian Home position performs unexpectedly, Do Fluoride 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 Do Fluoride will offset losses from the drop in Do Fluoride's long position.| Mengtian Home vs. Cloud Live Technology | Mengtian Home vs. Nanjing Putian Telecommunications | Mengtian Home vs. Shenzhen Coship Electronics | Mengtian Home vs. Shenzhen Hifuture Electric |
| Do Fluoride vs. Zijin Mining Group | Do Fluoride vs. Wanhua Chemical Group | Do Fluoride vs. Baoshan Iron Steel | Do Fluoride vs. Shandong Gold Mining |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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