Correlation Between China Minsheng and Guangxi Wuzhou
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By analyzing existing cross correlation between China Minsheng Banking and Guangxi Wuzhou Communications, you can compare the effects of market volatilities on China Minsheng and Guangxi Wuzhou 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 Guangxi Wuzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minsheng and Guangxi Wuzhou.
Diversification Opportunities for China Minsheng and Guangxi Wuzhou
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Guangxi is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding China Minsheng Banking and Guangxi Wuzhou Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Wuzhou Commu 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 Guangxi Wuzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Wuzhou Commu has no effect on the direction of China Minsheng i.e., China Minsheng and Guangxi Wuzhou go up and down completely randomly.
Pair Corralation between China Minsheng and Guangxi Wuzhou
Assuming the 90 days trading horizon China Minsheng is expected to generate 1.15 times less return on investment than Guangxi Wuzhou. But when comparing it to its historical volatility, China Minsheng Banking is 1.5 times less risky than Guangxi Wuzhou. It trades about 0.04 of its potential returns per unit of risk. Guangxi Wuzhou Communications is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 328.00 in Guangxi Wuzhou Communications on September 3, 2024 and sell it today you would earn a total of 70.00 from holding Guangxi Wuzhou Communications or generate 21.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Minsheng Banking vs. Guangxi Wuzhou Communications
Performance |
| Timeline |
| China Minsheng Banking |
| Guangxi Wuzhou Commu |
China Minsheng and Guangxi Wuzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Minsheng and Guangxi Wuzhou
The main advantage of trading using opposite China Minsheng and Guangxi Wuzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minsheng position performs unexpectedly, Guangxi Wuzhou 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 Guangxi Wuzhou will offset losses from the drop in Guangxi Wuzhou's long position.| China Minsheng vs. Zhongrun Resources Investment | China Minsheng vs. Jiangsu Yueda Investment | China Minsheng vs. Nuode Investment Co | China Minsheng vs. Hainan Haiqi Transportation |
| Guangxi Wuzhou vs. Cultural Investment Holdings | Guangxi Wuzhou vs. Gome Telecom Equipment | Guangxi Wuzhou vs. Bus Online Co | Guangxi Wuzhou vs. Holitech Technology 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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