Correlation Between China Minsheng and Taiji Computer
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By analyzing existing cross correlation between China Minsheng Banking and Taiji Computer Corp, you can compare the effects of market volatilities on China Minsheng and Taiji Computer 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 Minsheng with a short position of Taiji Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minsheng and Taiji Computer.
Diversification Opportunities for China Minsheng and Taiji Computer
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Taiji is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding China Minsheng Banking and Taiji Computer Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taiji Computer Corp and China Minsheng 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 Minsheng Banking are associated (or correlated) with Taiji Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taiji Computer Corp has no effect on the direction of China Minsheng i.e., China Minsheng and Taiji Computer go up and down completely randomly.
Pair Corralation between China Minsheng and Taiji Computer
Assuming the 90 days trading horizon China Minsheng Banking is expected to generate 0.45 times more return on investment than Taiji Computer. However, China Minsheng Banking is 2.23 times less risky than Taiji Computer. It trades about 0.26 of its potential returns per unit of risk. Taiji Computer Corp is currently generating about -0.15 per unit of risk. If you would invest 389.00 in China Minsheng Banking on September 25, 2024 and sell it today you would earn a total of 21.00 from holding China Minsheng Banking or generate 5.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Minsheng Banking vs. Taiji Computer Corp
Performance |
| Timeline |
| China Minsheng Banking |
| Taiji Computer Corp |
China Minsheng and Taiji Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Minsheng and Taiji Computer
The main advantage of trading using opposite China Minsheng and Taiji Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minsheng position performs unexpectedly, Taiji Computer 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 Taiji Computer will offset losses from the drop in Taiji Computer's long position.| China Minsheng vs. Kweichow Moutai Co | China Minsheng vs. Contemporary Amperex Technology | China Minsheng vs. G bits Network Technology | China Minsheng vs. BYD Co Ltd |
| Taiji Computer vs. Kweichow Moutai Co | Taiji Computer vs. Shenzhen Mindray Bio Medical | Taiji Computer vs. Jiangsu Pacific Quartz | Taiji Computer vs. G bits Network Technology |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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