Correlation Between Mengtian Home and Peoples Insurance
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By analyzing existing cross correlation between Mengtian Home Group and Peoples Insurance of, you can compare the effects of market volatilities on Mengtian Home and Peoples Insurance 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 Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mengtian Home and Peoples Insurance.
Diversification Opportunities for Mengtian Home and Peoples Insurance
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mengtian and Peoples is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Mengtian Home Group and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance 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 Peoples Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peoples Insurance has no effect on the direction of Mengtian Home i.e., Mengtian Home and Peoples Insurance go up and down completely randomly.
Pair Corralation between Mengtian Home and Peoples Insurance
Assuming the 90 days trading horizon Mengtian Home Group is expected to generate 1.6 times more return on investment than Peoples Insurance. However, Mengtian Home is 1.6 times more volatile than Peoples Insurance of. It trades about 0.07 of its potential returns per unit of risk. Peoples Insurance of is currently generating about 0.08 per unit of risk. If you would invest 761.00 in Mengtian Home Group on November 3, 2024 and sell it today you would earn a total of 342.00 from holding Mengtian Home Group or generate 44.94% 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. Peoples Insurance of
Performance |
| Timeline |
| Mengtian Home Group |
| Peoples Insurance |
Mengtian Home and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mengtian Home and Peoples Insurance
The main advantage of trading using opposite Mengtian Home and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mengtian Home position performs unexpectedly, Peoples Insurance 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 Peoples Insurance will offset losses from the drop in Peoples Insurance's long position.| Mengtian Home vs. Xinxiang Chemical Fiber | Mengtian Home vs. Lier Chemical Co | Mengtian Home vs. Zijin Mining Group | Mengtian Home vs. Western Metal Materials |
| Peoples Insurance vs. CIMC Vehicles Co | Peoples Insurance vs. Guocheng Mining Co | Peoples Insurance vs. Iat Automobile Technology | Peoples Insurance vs. Shengda Mining Co |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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