Correlation Between Tianjin Silvery and Mengtian Home
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By analyzing existing cross correlation between Tianjin Silvery Dragon and Mengtian Home Group, you can compare the effects of market volatilities on Tianjin Silvery and Mengtian Home 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 Tianjin Silvery with a short position of Mengtian Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Silvery and Mengtian Home.
Diversification Opportunities for Tianjin Silvery and Mengtian Home
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianjin and Mengtian is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Silvery Dragon and Mengtian Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mengtian Home Group and Tianjin Silvery 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 Tianjin Silvery Dragon are associated (or correlated) with Mengtian Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mengtian Home Group has no effect on the direction of Tianjin Silvery i.e., Tianjin Silvery and Mengtian Home go up and down completely randomly.
Pair Corralation between Tianjin Silvery and Mengtian Home
Assuming the 90 days trading horizon Tianjin Silvery Dragon is expected to under-perform the Mengtian Home. In addition to that, Tianjin Silvery is 1.94 times more volatile than Mengtian Home Group. It trades about -0.01 of its total potential returns per unit of risk. Mengtian Home Group is currently generating about 0.08 per unit of volatility. If you would invest 1,076 in Mengtian Home Group on November 6, 2024 and sell it today you would earn a total of 27.00 from holding Mengtian Home Group or generate 2.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Silvery Dragon vs. Mengtian Home Group
Performance |
| Timeline |
| Tianjin Silvery Dragon |
| Mengtian Home Group |
Tianjin Silvery and Mengtian Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Silvery and Mengtian Home
The main advantage of trading using opposite Tianjin Silvery and Mengtian Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Silvery position performs unexpectedly, Mengtian Home 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 Mengtian Home will offset losses from the drop in Mengtian Home's long position.| Tianjin Silvery vs. Hengkang Medical Group | Tianjin Silvery vs. Dhc Software Co | Tianjin Silvery vs. Qingdao Haier Biomedical | Tianjin Silvery vs. Eyebright Medical Technology |
| Mengtian Home vs. Huaxia Fund Management | Mengtian Home vs. Bosera CMSK Industrial | Mengtian Home vs. Sanbo Hospital Management | Mengtian Home vs. Guangzhou Haozhi Industrial |
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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