Correlation Between Mengtian Home and Bomin Electronics
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By analyzing existing cross correlation between Mengtian Home Group and Bomin Electronics Co, you can compare the effects of market volatilities on Mengtian Home and Bomin Electronics 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 Bomin Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mengtian Home and Bomin Electronics.
Diversification Opportunities for Mengtian Home and Bomin Electronics
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mengtian and Bomin is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Mengtian Home Group and Bomin Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bomin Electronics 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 Bomin Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bomin Electronics has no effect on the direction of Mengtian Home i.e., Mengtian Home and Bomin Electronics go up and down completely randomly.
Pair Corralation between Mengtian Home and Bomin Electronics
Assuming the 90 days trading horizon Mengtian Home Group is expected to generate 0.87 times more return on investment than Bomin Electronics. However, Mengtian Home Group is 1.14 times less risky than Bomin Electronics. It trades about -0.01 of its potential returns per unit of risk. Bomin Electronics Co is currently generating about -0.03 per unit of risk. If you would invest 1,368 in Mengtian Home Group on October 16, 2024 and sell it today you would lose (351.00) from holding Mengtian Home Group or give up 25.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mengtian Home Group vs. Bomin Electronics Co
Performance |
| Timeline |
| Mengtian Home Group |
| Bomin Electronics |
Mengtian Home and Bomin Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mengtian Home and Bomin Electronics
The main advantage of trading using opposite Mengtian Home and Bomin Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mengtian Home position performs unexpectedly, Bomin Electronics 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 Bomin Electronics will offset losses from the drop in Bomin Electronics' long position.| Mengtian Home vs. Songz Automobile Air | Mengtian Home vs. Hengkang Medical Group | Mengtian Home vs. Tinavi Medical Technologies | Mengtian Home vs. Dongfeng Automobile Co |
| Bomin Electronics vs. Aba Chemicals Corp | Bomin Electronics vs. Vohringer Home Technology | Bomin Electronics vs. Mengtian Home Group | Bomin Electronics vs. Guangzhou Dongfang Hotel |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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