Correlation Between Mengtian Home and Suofeiya Home
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By analyzing existing cross correlation between Mengtian Home Group and Suofeiya Home Collection, you can compare the effects of market volatilities on Mengtian Home and Suofeiya 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 Mengtian Home with a short position of Suofeiya Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mengtian Home and Suofeiya Home.
Diversification Opportunities for Mengtian Home and Suofeiya Home
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mengtian and Suofeiya is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Mengtian Home Group and Suofeiya Home Collection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suofeiya Home Collection 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 Suofeiya Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suofeiya Home Collection has no effect on the direction of Mengtian Home i.e., Mengtian Home and Suofeiya Home go up and down completely randomly.
Pair Corralation between Mengtian Home and Suofeiya Home
Assuming the 90 days trading horizon Mengtian Home Group is expected to generate 0.64 times more return on investment than Suofeiya Home. However, Mengtian Home Group is 1.56 times less risky than Suofeiya Home. It trades about 0.09 of its potential returns per unit of risk. Suofeiya Home Collection is currently generating about 0.02 per unit of risk. If you would invest 915.00 in Mengtian Home Group on September 3, 2024 and sell it today you would earn a total of 181.00 from holding Mengtian Home Group or generate 19.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mengtian Home Group vs. Suofeiya Home Collection
Performance |
| Timeline |
| Mengtian Home Group |
| Suofeiya Home Collection |
Mengtian Home and Suofeiya Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mengtian Home and Suofeiya Home
The main advantage of trading using opposite Mengtian Home and Suofeiya Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mengtian Home position performs unexpectedly, Suofeiya 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 Suofeiya Home will offset losses from the drop in Suofeiya Home's long position.| Mengtian Home vs. PetroChina Co Ltd | Mengtian Home vs. China Mobile Limited | Mengtian Home vs. Industrial and Commercial | Mengtian Home vs. China Life Insurance |
| Suofeiya Home vs. PetroChina Co Ltd | Suofeiya Home vs. China Mobile Limited | Suofeiya Home vs. Industrial and Commercial | Suofeiya Home vs. China Life Insurance |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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