Correlation Between Mengtian Home and Suzhou Industrial
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By analyzing existing cross correlation between Mengtian Home Group and Suzhou Industrial Park, you can compare the effects of market volatilities on Mengtian Home and Suzhou Industrial 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 Suzhou Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mengtian Home and Suzhou Industrial.
Diversification Opportunities for Mengtian Home and Suzhou Industrial
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mengtian and Suzhou is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Mengtian Home Group and Suzhou Industrial Park in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Industrial Park 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 Suzhou Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Industrial Park has no effect on the direction of Mengtian Home i.e., Mengtian Home and Suzhou Industrial go up and down completely randomly.
Pair Corralation between Mengtian Home and Suzhou Industrial
Assuming the 90 days trading horizon Mengtian Home Group is expected to under-perform the Suzhou Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Mengtian Home Group is 1.21 times less risky than Suzhou Industrial. The stock trades about -0.02 of its potential returns per unit of risk. The Suzhou Industrial Park is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 987.00 in Suzhou Industrial Park on October 12, 2024 and sell it today you would earn a total of 66.00 from holding Suzhou Industrial Park or generate 6.69% 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. Suzhou Industrial Park
Performance |
| Timeline |
| Mengtian Home Group |
| Suzhou Industrial Park |
Mengtian Home and Suzhou Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mengtian Home and Suzhou Industrial
The main advantage of trading using opposite Mengtian Home and Suzhou Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mengtian Home position performs unexpectedly, Suzhou Industrial 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 Suzhou Industrial will offset losses from the drop in Suzhou Industrial's long position.| Mengtian Home vs. Shandong Homey Aquatic | Mengtian Home vs. UE Furniture Co | Mengtian Home vs. Ningxia Younglight Chemicals | Mengtian Home vs. Shanghai Shuixing Home |
| Suzhou Industrial vs. Dr Peng Telecom | Suzhou Industrial vs. Mengtian Home Group | Suzhou Industrial vs. Markor International Home | Suzhou Industrial vs. Bank of Communications |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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