Correlation Between Mengtian Home and Chison Medical
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By analyzing existing cross correlation between Mengtian Home Group and Chison Medical Technologies, you can compare the effects of market volatilities on Mengtian Home and Chison 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 Chison Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mengtian Home and Chison Medical.
Diversification Opportunities for Mengtian Home and Chison Medical
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mengtian and Chison is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Mengtian Home Group and Chison Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chison Medical Techn 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 Chison Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chison Medical Techn has no effect on the direction of Mengtian Home i.e., Mengtian Home and Chison Medical go up and down completely randomly.
Pair Corralation between Mengtian Home and Chison Medical
Assuming the 90 days trading horizon Mengtian Home Group is expected to under-perform the Chison Medical. But the stock apears to be less risky and, when comparing its historical volatility, Mengtian Home Group is 1.38 times less risky than Chison Medical. The stock trades about -0.01 of its potential returns per unit of risk. The Chison Medical Technologies is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,344 in Chison Medical Technologies on September 12, 2024 and sell it today you would lose (520.00) from holding Chison Medical Technologies or give up 15.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mengtian Home Group vs. Chison Medical Technologies
Performance |
| Timeline |
| Mengtian Home Group |
| Chison Medical Techn |
Mengtian Home and Chison Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mengtian Home and Chison Medical
The main advantage of trading using opposite Mengtian Home and Chison Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mengtian Home position performs unexpectedly, Chison 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 Chison Medical will offset losses from the drop in Chison Medical's long position.| Mengtian Home vs. Lutian Machinery Co | Mengtian Home vs. PetroChina Co Ltd | Mengtian Home vs. Bank of China | Mengtian Home vs. Gansu Jiu Steel |
| Chison Medical vs. Cultural Investment Holdings | Chison Medical vs. Gome Telecom Equipment | Chison Medical vs. Holitech Technology Co | Chison Medical vs. Zotye Automobile 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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