Correlation Between China Minsheng and Broadex Technologies
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By analyzing existing cross correlation between China Minsheng Banking and Broadex Technologies Co, you can compare the effects of market volatilities on China Minsheng and Broadex Technologies 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 Broadex Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minsheng and Broadex Technologies.
Diversification Opportunities for China Minsheng and Broadex Technologies
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Broadex is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding China Minsheng Banking and Broadex Technologies Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broadex Technologies 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 Broadex Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broadex Technologies has no effect on the direction of China Minsheng i.e., China Minsheng and Broadex Technologies go up and down completely randomly.
Pair Corralation between China Minsheng and Broadex Technologies
Assuming the 90 days trading horizon China Minsheng Banking is expected to generate 0.66 times more return on investment than Broadex Technologies. However, China Minsheng Banking is 1.52 times less risky than Broadex Technologies. It trades about 0.11 of its potential returns per unit of risk. Broadex Technologies Co is currently generating about -0.19 per unit of risk. If you would invest 378.00 in China Minsheng Banking on September 1, 2024 and sell it today you would earn a total of 18.00 from holding China Minsheng Banking or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Minsheng Banking vs. Broadex Technologies Co
Performance |
| Timeline |
| China Minsheng Banking |
| Broadex Technologies |
China Minsheng and Broadex Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Minsheng and Broadex Technologies
The main advantage of trading using opposite China Minsheng and Broadex Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minsheng position performs unexpectedly, Broadex Technologies 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 Broadex Technologies will offset losses from the drop in Broadex Technologies' long position.| China Minsheng vs. V V Food | China Minsheng vs. Juewei Food Co | China Minsheng vs. 360 Security Technology | China Minsheng vs. Guangdong Xiongsu 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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