Correlation Between Cangzhou Mingzhu and China Building
Specify exactly 2 symbols:
By analyzing existing cross correlation between Cangzhou Mingzhu Plastic and China Building Material, you can compare the effects of market volatilities on Cangzhou Mingzhu and China Building 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 Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cangzhou Mingzhu and China Building.
Diversification Opportunities for Cangzhou Mingzhu and China Building
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cangzhou and China is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Cangzhou Mingzhu Plastic and China Building Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Building Material 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 Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Building Material has no effect on the direction of Cangzhou Mingzhu i.e., Cangzhou Mingzhu and China Building go up and down completely randomly.
Pair Corralation between Cangzhou Mingzhu and China Building
Assuming the 90 days trading horizon Cangzhou Mingzhu Plastic is expected to generate 0.78 times more return on investment than China Building. However, Cangzhou Mingzhu Plastic is 1.29 times less risky than China Building. It trades about -0.03 of its potential returns per unit of risk. China Building Material is currently generating about -0.03 per unit of risk. If you would invest 464.00 in Cangzhou Mingzhu Plastic on November 2, 2024 and sell it today you would lose (123.00) from holding Cangzhou Mingzhu Plastic or give up 26.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cangzhou Mingzhu Plastic vs. China Building Material
Performance |
| Timeline |
| Cangzhou Mingzhu Plastic |
| China Building Material |
Cangzhou Mingzhu and China Building Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cangzhou Mingzhu and China Building
The main advantage of trading using opposite Cangzhou Mingzhu and China Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cangzhou Mingzhu position performs unexpectedly, China Building 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 Building will offset losses from the drop in China Building's long position.| Cangzhou Mingzhu vs. Zhejiang Kingland Pipeline | Cangzhou Mingzhu vs. Ming Yang Smart | Cangzhou Mingzhu vs. Loctek Ergonomic Technology | Cangzhou Mingzhu vs. Hwabao WP CSI |
| China Building vs. MayAir Technology Co | China Building vs. Qifeng New Material | China Building vs. Qingdao Haier Biomedical | China Building vs. Winner Medical Co |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |