Correlation Between Mengtian Home and China Petroleum
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By analyzing existing cross correlation between Mengtian Home Group and China Petroleum Chemical, you can compare the effects of market volatilities on Mengtian Home and China Petroleum 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 China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mengtian Home and China Petroleum.
Diversification Opportunities for Mengtian Home and China Petroleum
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mengtian and China is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Mengtian Home Group and China Petroleum Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Petroleum Chemical 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 China Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Petroleum Chemical has no effect on the direction of Mengtian Home i.e., Mengtian Home and China Petroleum go up and down completely randomly.
Pair Corralation between Mengtian Home and China Petroleum
Assuming the 90 days trading horizon Mengtian Home Group is expected to generate 1.11 times more return on investment than China Petroleum. However, Mengtian Home is 1.11 times more volatile than China Petroleum Chemical. It trades about 0.05 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about 0.0 per unit of risk. If you would invest 990.00 in Mengtian Home Group on August 29, 2024 and sell it today you would earn a total of 88.00 from holding Mengtian Home Group or generate 8.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mengtian Home Group vs. China Petroleum Chemical
Performance |
| Timeline |
| Mengtian Home Group |
| China Petroleum Chemical |
Mengtian Home and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mengtian Home and China Petroleum
The main advantage of trading using opposite Mengtian Home and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mengtian Home position performs unexpectedly, China Petroleum 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 China Petroleum will offset losses from the drop in China Petroleum'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 |
| China Petroleum vs. Anhui Huilong Agricultural | China Petroleum vs. Chinese Universe Publishing | China Petroleum vs. Shanghai Action Education | China Petroleum vs. Time Publishing and |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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