Correlation Between China Mengniu and DOMINION
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Mengniu Dairy and DOMINION RES INC, you can compare the effects of market volatilities on China Mengniu and DOMINION 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 China Mengniu with a short position of DOMINION. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mengniu and DOMINION.
Diversification Opportunities for China Mengniu and DOMINION
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and DOMINION is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding China Mengniu Dairy and DOMINION RES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DOMINION RES INC and China Mengniu 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 China Mengniu Dairy are associated (or correlated) with DOMINION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOMINION RES INC has no effect on the direction of China Mengniu i.e., China Mengniu and DOMINION go up and down completely randomly.
Pair Corralation between China Mengniu and DOMINION
Assuming the 90 days horizon China Mengniu Dairy is expected to generate 7.0 times more return on investment than DOMINION. However, China Mengniu is 7.0 times more volatile than DOMINION RES INC. It trades about 0.04 of its potential returns per unit of risk. DOMINION RES INC is currently generating about 0.05 per unit of risk. If you would invest 2,164 in China Mengniu Dairy on August 31, 2024 and sell it today you would earn a total of 45.00 from holding China Mengniu Dairy or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
China Mengniu Dairy vs. DOMINION RES INC
Performance |
| Timeline |
| China Mengniu Dairy |
| DOMINION RES INC |
China Mengniu and DOMINION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mengniu and DOMINION
The main advantage of trading using opposite China Mengniu and DOMINION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mengniu position performs unexpectedly, DOMINION 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 DOMINION will offset losses from the drop in DOMINION's long position.| China Mengniu vs. The A2 Milk | China Mengniu vs. Altavoz Entertainment | China Mengniu vs. Artisan Consumer Goods | China Mengniu vs. General Mills |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |