Correlation Between Mengtian Home and Western Mining
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By analyzing existing cross correlation between Mengtian Home Group and Western Mining Co, you can compare the effects of market volatilities on Mengtian Home and Western Mining 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 Western Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mengtian Home and Western Mining.
Diversification Opportunities for Mengtian Home and Western Mining
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mengtian and Western is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Mengtian Home Group and Western Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Mining 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 Western Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Mining has no effect on the direction of Mengtian Home i.e., Mengtian Home and Western Mining go up and down completely randomly.
Pair Corralation between Mengtian Home and Western Mining
Assuming the 90 days trading horizon Mengtian Home is expected to generate 6.67 times less return on investment than Western Mining. In addition to that, Mengtian Home is 1.55 times more volatile than Western Mining Co. It trades about 0.02 of its total potential returns per unit of risk. Western Mining Co is currently generating about 0.22 per unit of volatility. If you would invest 1,644 in Western Mining Co on October 30, 2024 and sell it today you would earn a total of 99.00 from holding Western Mining Co or generate 6.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mengtian Home Group vs. Western Mining Co
Performance |
| Timeline |
| Mengtian Home Group |
| Western Mining |
Mengtian Home and Western Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mengtian Home and Western Mining
The main advantage of trading using opposite Mengtian Home and Western Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mengtian Home position performs unexpectedly, Western Mining 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 Western Mining will offset losses from the drop in Western Mining's long position.| Mengtian Home vs. Cloud Live Technology | Mengtian Home vs. Nanjing Putian Telecommunications | Mengtian Home vs. Shenzhen Coship Electronics | Mengtian Home vs. Shenzhen Hifuture Electric |
| Western Mining vs. Touchstone International Medical | Western Mining vs. Tongyu Communication | Western Mining vs. Qingdao Haier Biomedical | Western Mining vs. Kontour Medical Technology |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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