Correlation Between Mengtian Home and Gifore Agricultural
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By analyzing existing cross correlation between Mengtian Home Group and Gifore Agricultural Machinery, you can compare the effects of market volatilities on Mengtian Home and Gifore Agricultural 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 Gifore Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mengtian Home and Gifore Agricultural.
Diversification Opportunities for Mengtian Home and Gifore Agricultural
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mengtian and Gifore is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Mengtian Home Group and Gifore Agricultural Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gifore Agricultural 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 Gifore Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gifore Agricultural has no effect on the direction of Mengtian Home i.e., Mengtian Home and Gifore Agricultural go up and down completely randomly.
Pair Corralation between Mengtian Home and Gifore Agricultural
Assuming the 90 days trading horizon Mengtian Home is expected to generate 1.51 times less return on investment than Gifore Agricultural. In addition to that, Mengtian Home is 1.44 times more volatile than Gifore Agricultural Machinery. It trades about 0.06 of its total potential returns per unit of risk. Gifore Agricultural Machinery is currently generating about 0.12 per unit of volatility. If you would invest 476.00 in Gifore Agricultural Machinery on September 28, 2024 and sell it today you would earn a total of 40.00 from holding Gifore Agricultural Machinery or generate 8.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mengtian Home Group vs. Gifore Agricultural Machinery
Performance |
| Timeline |
| Mengtian Home Group |
| Gifore Agricultural |
Mengtian Home and Gifore Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mengtian Home and Gifore Agricultural
The main advantage of trading using opposite Mengtian Home and Gifore Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mengtian Home position performs unexpectedly, Gifore Agricultural 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 Gifore Agricultural will offset losses from the drop in Gifore Agricultural's long position.| Mengtian Home vs. Agricultural Bank of | Mengtian Home vs. Industrial and Commercial | Mengtian Home vs. Bank of China | Mengtian Home vs. China Construction Bank |
| Gifore Agricultural vs. Hengdian Entertainment Co | Gifore Agricultural vs. Oppein Home Group | Gifore Agricultural vs. Guangdong Jinma Entertainment | Gifore Agricultural vs. Mengtian Home 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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