Correlation Between China Mengniu and 69331CAJ7
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By analyzing existing cross correlation between China Mengniu Dairy and PGE 525 percent, you can compare the effects of market volatilities on China Mengniu and 69331CAJ7 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 69331CAJ7. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mengniu and 69331CAJ7.
Diversification Opportunities for China Mengniu and 69331CAJ7
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and 69331CAJ7 is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding China Mengniu Dairy and PGE 525 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PGE 525 percent 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 69331CAJ7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PGE 525 percent has no effect on the direction of China Mengniu i.e., China Mengniu and 69331CAJ7 go up and down completely randomly.
Pair Corralation between China Mengniu and 69331CAJ7
Assuming the 90 days horizon China Mengniu Dairy is expected to generate 2.27 times more return on investment than 69331CAJ7. However, China Mengniu is 2.27 times more volatile than PGE 525 percent. It trades about -0.06 of its potential returns per unit of risk. PGE 525 percent is currently generating about -0.17 per unit of risk. If you would invest 2,262 in China Mengniu Dairy on September 2, 2024 and sell it today you would lose (118.00) from holding China Mengniu Dairy or give up 5.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
China Mengniu Dairy vs. PGE 525 percent
Performance |
| Timeline |
| China Mengniu Dairy |
| PGE 525 percent |
China Mengniu and 69331CAJ7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mengniu and 69331CAJ7
The main advantage of trading using opposite China Mengniu and 69331CAJ7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mengniu position performs unexpectedly, 69331CAJ7 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 69331CAJ7 will offset losses from the drop in 69331CAJ7's long position.| China Mengniu vs. The A2 Milk | China Mengniu vs. Artisan Consumer Goods | China Mengniu vs. General Mills |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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