Correlation Between Mengtian Home and Zhongzhu Medical
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By analyzing existing cross correlation between Mengtian Home Group and Zhongzhu Medical Holdings, you can compare the effects of market volatilities on Mengtian Home and Zhongzhu Medical 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 Zhongzhu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mengtian Home and Zhongzhu Medical.
Diversification Opportunities for Mengtian Home and Zhongzhu Medical
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mengtian and Zhongzhu is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Mengtian Home Group and Zhongzhu Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongzhu Medical Holdings 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 Zhongzhu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongzhu Medical Holdings has no effect on the direction of Mengtian Home i.e., Mengtian Home and Zhongzhu Medical go up and down completely randomly.
Pair Corralation between Mengtian Home and Zhongzhu Medical
Assuming the 90 days trading horizon Mengtian Home Group is expected to generate 1.29 times more return on investment than Zhongzhu Medical. However, Mengtian Home is 1.29 times more volatile than Zhongzhu Medical Holdings. It trades about 0.01 of its potential returns per unit of risk. Zhongzhu Medical Holdings is currently generating about -0.04 per unit of risk. If you would invest 1,133 in Mengtian Home Group on October 20, 2024 and sell it today you would lose (62.00) from holding Mengtian Home Group or give up 5.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mengtian Home Group vs. Zhongzhu Medical Holdings
Performance |
| Timeline |
| Mengtian Home Group |
| Zhongzhu Medical Holdings |
Mengtian Home and Zhongzhu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mengtian Home and Zhongzhu Medical
The main advantage of trading using opposite Mengtian Home and Zhongzhu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mengtian Home position performs unexpectedly, Zhongzhu Medical 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 Zhongzhu Medical will offset losses from the drop in Zhongzhu Medical's long position.| Mengtian Home vs. Kweichow Moutai Co | Mengtian Home vs. Contemporary Amperex Technology | Mengtian Home vs. G bits Network Technology | Mengtian Home vs. BYD Co Ltd |
| Zhongzhu Medical vs. Mengtian Home Group | Zhongzhu Medical vs. Zoy Home Furnishing | Zhongzhu Medical vs. Eastroc Beverage Group | Zhongzhu Medical vs. Qumei Furniture 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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