Correlation Between Mengtian Home and Jinsanjiang Silicon
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By analyzing existing cross correlation between Mengtian Home Group and Jinsanjiang Silicon Material, you can compare the effects of market volatilities on Mengtian Home and Jinsanjiang Silicon 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 Jinsanjiang Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mengtian Home and Jinsanjiang Silicon.
Diversification Opportunities for Mengtian Home and Jinsanjiang Silicon
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mengtian and Jinsanjiang is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Mengtian Home Group and Jinsanjiang Silicon Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinsanjiang Silicon 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 Jinsanjiang Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinsanjiang Silicon has no effect on the direction of Mengtian Home i.e., Mengtian Home and Jinsanjiang Silicon go up and down completely randomly.
Pair Corralation between Mengtian Home and Jinsanjiang Silicon
Assuming the 90 days trading horizon Mengtian Home Group is expected to generate 0.69 times more return on investment than Jinsanjiang Silicon. However, Mengtian Home Group is 1.46 times less risky than Jinsanjiang Silicon. It trades about 0.13 of its potential returns per unit of risk. Jinsanjiang Silicon Material is currently generating about -0.05 per unit of risk. If you would invest 1,123 in Mengtian Home Group on January 28, 2025 and sell it today you would earn a total of 90.00 from holding Mengtian Home Group or generate 8.01% 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. Jinsanjiang Silicon Material
Performance |
| Timeline |
| Mengtian Home Group |
| Jinsanjiang Silicon |
Mengtian Home and Jinsanjiang Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mengtian Home and Jinsanjiang Silicon
The main advantage of trading using opposite Mengtian Home and Jinsanjiang Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mengtian Home position performs unexpectedly, Jinsanjiang Silicon 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 Jinsanjiang Silicon will offset losses from the drop in Jinsanjiang Silicon's long position.| Mengtian Home vs. Uxi Unicomp Technology | Mengtian Home vs. Guangdong Xiongsu Technology | Mengtian Home vs. BTG Hotels Group | Mengtian Home vs. Shandong Hi Speed RoadBridge |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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