Correlation Between Mengtian Home and Beijing Kaiwen
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By analyzing existing cross correlation between Mengtian Home Group and Beijing Kaiwen Education, you can compare the effects of market volatilities on Mengtian Home and Beijing Kaiwen 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 Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mengtian Home and Beijing Kaiwen.
Diversification Opportunities for Mengtian Home and Beijing Kaiwen
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mengtian and Beijing is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Mengtian Home Group and Beijing Kaiwen Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Kaiwen Education 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 Beijing Kaiwen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Kaiwen Education has no effect on the direction of Mengtian Home i.e., Mengtian Home and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between Mengtian Home and Beijing Kaiwen
Assuming the 90 days trading horizon Mengtian Home Group is expected to under-perform the Beijing Kaiwen. But the stock apears to be less risky and, when comparing its historical volatility, Mengtian Home Group is 1.12 times less risky than Beijing Kaiwen. The stock trades about -0.53 of its potential returns per unit of risk. The Beijing Kaiwen Education is currently generating about -0.42 of returns per unit of risk over similar time horizon. If you would invest 611.00 in Beijing Kaiwen Education on October 16, 2024 and sell it today you would lose (177.00) from holding Beijing Kaiwen Education or give up 28.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mengtian Home Group vs. Beijing Kaiwen Education
Performance |
| Timeline |
| Mengtian Home Group |
| Beijing Kaiwen Education |
Mengtian Home and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mengtian Home and Beijing Kaiwen
The main advantage of trading using opposite Mengtian Home and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mengtian Home position performs unexpectedly, Beijing Kaiwen 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 Beijing Kaiwen will offset losses from the drop in Beijing Kaiwen's long position.| Mengtian Home vs. Songz Automobile Air | Mengtian Home vs. Hengkang Medical Group | Mengtian Home vs. Tinavi Medical Technologies | Mengtian Home vs. Dongfeng Automobile Co |
| Beijing Kaiwen vs. Qumei Furniture Group | Beijing Kaiwen vs. Mengtian Home Group | Beijing Kaiwen vs. Hengli Industrial Development | Beijing Kaiwen vs. Suzhou Industrial Park |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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