Correlation Between Mengtian Home and Guilin Seamild
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By analyzing existing cross correlation between Mengtian Home Group and Guilin Seamild Foods, you can compare the effects of market volatilities on Mengtian Home and Guilin Seamild 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 Guilin Seamild. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mengtian Home and Guilin Seamild.
Diversification Opportunities for Mengtian Home and Guilin Seamild
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mengtian and Guilin is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Mengtian Home Group and Guilin Seamild Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guilin Seamild Foods 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 Guilin Seamild. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guilin Seamild Foods has no effect on the direction of Mengtian Home i.e., Mengtian Home and Guilin Seamild go up and down completely randomly.
Pair Corralation between Mengtian Home and Guilin Seamild
Assuming the 90 days trading horizon Mengtian Home Group is expected to generate 0.66 times more return on investment than Guilin Seamild. However, Mengtian Home Group is 1.52 times less risky than Guilin Seamild. It trades about 0.31 of its potential returns per unit of risk. Guilin Seamild Foods is currently generating about 0.07 per unit of risk. 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 |
Mengtian Home Group vs. Guilin Seamild Foods
Performance |
| Timeline |
| Mengtian Home Group |
| Guilin Seamild Foods |
Mengtian Home and Guilin Seamild Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mengtian Home and Guilin Seamild
The main advantage of trading using opposite Mengtian Home and Guilin Seamild positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mengtian Home position performs unexpectedly, Guilin Seamild 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 Guilin Seamild will offset losses from the drop in Guilin Seamild'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 |
| Guilin Seamild vs. BrightGene Bio Medical | Guilin Seamild vs. Guangdong Transtek Medical | Guilin Seamild vs. Allgens Medical Technology | Guilin Seamild vs. Xiangyu Medical Co |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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