Correlation Between Mengtian Home and Agricultural Bank
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By analyzing existing cross correlation between Mengtian Home Group and Agricultural Bank of, you can compare the effects of market volatilities on Mengtian Home and Agricultural Bank 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 Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mengtian Home and Agricultural Bank.
Diversification Opportunities for Mengtian Home and Agricultural Bank
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mengtian and Agricultural is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Mengtian Home Group and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank 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 Agricultural Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agricultural Bank has no effect on the direction of Mengtian Home i.e., Mengtian Home and Agricultural Bank go up and down completely randomly.
Pair Corralation between Mengtian Home and Agricultural Bank
Assuming the 90 days trading horizon Mengtian Home Group is expected to generate 1.82 times more return on investment than Agricultural Bank. However, Mengtian Home is 1.82 times more volatile than Agricultural Bank of. It trades about 0.05 of its potential returns per unit of risk. Agricultural Bank of is currently generating about 0.05 per unit of risk. If you would invest 904.00 in Mengtian Home Group on September 1, 2024 and sell it today you would earn a total of 191.00 from holding Mengtian Home Group or generate 21.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mengtian Home Group vs. Agricultural Bank of
Performance |
| Timeline |
| Mengtian Home Group |
| Agricultural Bank |
Mengtian Home and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mengtian Home and Agricultural Bank
The main advantage of trading using opposite Mengtian Home and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mengtian Home position performs unexpectedly, Agricultural Bank 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 Agricultural Bank will offset losses from the drop in Agricultural Bank's long position.| Mengtian Home vs. China Publishing Media | Mengtian Home vs. Time Publishing and | Mengtian Home vs. Yingde Greatchem Chemicals | Mengtian Home vs. Focus Media Information |
| Agricultural Bank vs. China State Construction | Agricultural Bank vs. China Railway Group | Agricultural Bank vs. China Railway Construction | Agricultural Bank vs. China Mobile Limited |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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