Correlation Between China Minsheng and Dongnan Electronics
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Minsheng Banking and Dongnan Electronics Co, you can compare the effects of market volatilities on China Minsheng and Dongnan Electronics 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 Dongnan Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minsheng and Dongnan Electronics.
Diversification Opportunities for China Minsheng and Dongnan Electronics
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Dongnan is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding China Minsheng Banking and Dongnan Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongnan Electronics 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 Dongnan Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongnan Electronics has no effect on the direction of China Minsheng i.e., China Minsheng and Dongnan Electronics go up and down completely randomly.
Pair Corralation between China Minsheng and Dongnan Electronics
Assuming the 90 days trading horizon China Minsheng is expected to generate 1.36 times less return on investment than Dongnan Electronics. But when comparing it to its historical volatility, China Minsheng Banking is 2.68 times less risky than Dongnan Electronics. It trades about 0.03 of its potential returns per unit of risk. Dongnan Electronics Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,487 in Dongnan Electronics Co on August 30, 2024 and sell it today you would lose (63.00) from holding Dongnan Electronics Co or give up 2.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Minsheng Banking vs. Dongnan Electronics Co
Performance |
| Timeline |
| China Minsheng Banking |
| Dongnan Electronics |
China Minsheng and Dongnan Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Minsheng and Dongnan Electronics
The main advantage of trading using opposite China Minsheng and Dongnan Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minsheng position performs unexpectedly, Dongnan Electronics 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 Dongnan Electronics will offset losses from the drop in Dongnan Electronics' long position.| China Minsheng vs. Zhejiang Publishing Media | China Minsheng vs. Duzhe Publishing Media | China Minsheng vs. China Publishing Media | China Minsheng vs. Southern PublishingMedia Co |
| Dongnan Electronics vs. PetroChina Co Ltd | Dongnan Electronics vs. China State Construction | Dongnan Electronics vs. China Mobile Limited | Dongnan Electronics vs. Industrial and Commercial |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |