Correlation Between Mengtian Home and East Money
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By analyzing existing cross correlation between Mengtian Home Group and East Money Information, you can compare the effects of market volatilities on Mengtian Home and East Money 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 East Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mengtian Home and East Money.
Diversification Opportunities for Mengtian Home and East Money
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mengtian and East is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Mengtian Home Group and East Money Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on East Money Information 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 East Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of East Money Information has no effect on the direction of Mengtian Home i.e., Mengtian Home and East Money go up and down completely randomly.
Pair Corralation between Mengtian Home and East Money
Assuming the 90 days trading horizon Mengtian Home Group is expected to under-perform the East Money. But the stock apears to be less risky and, when comparing its historical volatility, Mengtian Home Group is 1.19 times less risky than East Money. The stock trades about -0.01 of its potential returns per unit of risk. The East Money Information is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,922 in East Money Information on October 11, 2024 and sell it today you would earn a total of 334.00 from holding East Money Information or generate 17.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mengtian Home Group vs. East Money Information
Performance |
| Timeline |
| Mengtian Home Group |
| East Money Information |
Mengtian Home and East Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mengtian Home and East Money
The main advantage of trading using opposite Mengtian Home and East Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mengtian Home position performs unexpectedly, East Money 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 East Money will offset losses from the drop in East Money's long position.| Mengtian Home vs. Guangzhou Tinci Materials | Mengtian Home vs. Jilin OLED Material | Mengtian Home vs. Ningxia Building Materials | Mengtian Home vs. Western Metal Materials |
| East Money vs. Markor International Home | East Money vs. CSSC Offshore Marine | East Money vs. Citic Offshore Helicopter | East Money 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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