Correlation Between Cangzhou Mingzhu and China Resources
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By analyzing existing cross correlation between Cangzhou Mingzhu Plastic and China Resources Boya, you can compare the effects of market volatilities on Cangzhou Mingzhu and China Resources 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 Cangzhou Mingzhu with a short position of China Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cangzhou Mingzhu and China Resources.
Diversification Opportunities for Cangzhou Mingzhu and China Resources
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cangzhou and China is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Cangzhou Mingzhu Plastic and China Resources Boya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Resources Boya and Cangzhou Mingzhu 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 Cangzhou Mingzhu Plastic are associated (or correlated) with China Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Resources Boya has no effect on the direction of Cangzhou Mingzhu i.e., Cangzhou Mingzhu and China Resources go up and down completely randomly.
Pair Corralation between Cangzhou Mingzhu and China Resources
Assuming the 90 days trading horizon Cangzhou Mingzhu Plastic is expected to generate 1.7 times more return on investment than China Resources. However, Cangzhou Mingzhu is 1.7 times more volatile than China Resources Boya. It trades about -0.15 of its potential returns per unit of risk. China Resources Boya is currently generating about -0.26 per unit of risk. If you would invest 363.00 in Cangzhou Mingzhu Plastic on October 23, 2024 and sell it today you would lose (20.00) from holding Cangzhou Mingzhu Plastic or give up 5.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cangzhou Mingzhu Plastic vs. China Resources Boya
Performance |
| Timeline |
| Cangzhou Mingzhu Plastic |
| China Resources Boya |
Cangzhou Mingzhu and China Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cangzhou Mingzhu and China Resources
The main advantage of trading using opposite Cangzhou Mingzhu and China Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cangzhou Mingzhu position performs unexpectedly, China Resources 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 China Resources will offset losses from the drop in China Resources' long position.| Cangzhou Mingzhu vs. Beijing Baolande Software | Cangzhou Mingzhu vs. Fujian Boss Software | Cangzhou Mingzhu vs. Zoy Home Furnishing | Cangzhou Mingzhu vs. UE Furniture Co |
| China Resources vs. Huaxia Fund Management | China Resources vs. Western Metal Materials | China Resources vs. Cangzhou Mingzhu Plastic | China Resources vs. Kangxin New Materials |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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