Correlation Between China Mengniu and 629377CH3
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By analyzing existing cross correlation between China Mengniu Dairy and NRG Energy 525, you can compare the effects of market volatilities on China Mengniu and 629377CH3 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 629377CH3. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mengniu and 629377CH3.
Diversification Opportunities for China Mengniu and 629377CH3
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and 629377CH3 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Mengniu Dairy and NRG Energy 525 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NRG Energy 525 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 629377CH3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NRG Energy 525 has no effect on the direction of China Mengniu i.e., China Mengniu and 629377CH3 go up and down completely randomly.
Pair Corralation between China Mengniu and 629377CH3
If you would invest (100.00) in NRG Energy 525 on September 2, 2024 and sell it today you would earn a total of 100.00 from holding NRG Energy 525 or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
China Mengniu Dairy vs. NRG Energy 525
Performance |
| Timeline |
| China Mengniu Dairy |
| NRG Energy 525 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
China Mengniu and 629377CH3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mengniu and 629377CH3
The main advantage of trading using opposite China Mengniu and 629377CH3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mengniu position performs unexpectedly, 629377CH3 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 629377CH3 will offset losses from the drop in 629377CH3's long position.| China Mengniu vs. The A2 Milk | 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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