Correlation Between China Minsheng and ButOne Information
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By analyzing existing cross correlation between China Minsheng Banking and ButOne Information Corp, you can compare the effects of market volatilities on China Minsheng and ButOne Information 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 ButOne Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minsheng and ButOne Information.
Diversification Opportunities for China Minsheng and ButOne Information
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and ButOne is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding China Minsheng Banking and ButOne Information Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ButOne Information 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 ButOne Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ButOne Information Corp has no effect on the direction of China Minsheng i.e., China Minsheng and ButOne Information go up and down completely randomly.
Pair Corralation between China Minsheng and ButOne Information
Assuming the 90 days trading horizon China Minsheng Banking is expected to under-perform the ButOne Information. But the stock apears to be less risky and, when comparing its historical volatility, China Minsheng Banking is 2.34 times less risky than ButOne Information. The stock trades about 0.0 of its potential returns per unit of risk. The ButOne Information Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,233 in ButOne Information Corp on August 30, 2024 and sell it today you would earn a total of 46.00 from holding ButOne Information Corp or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Minsheng Banking vs. ButOne Information Corp
Performance |
| Timeline |
| China Minsheng Banking |
| ButOne Information Corp |
China Minsheng and ButOne Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Minsheng and ButOne Information
The main advantage of trading using opposite China Minsheng and ButOne Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minsheng position performs unexpectedly, ButOne Information 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 ButOne Information will offset losses from the drop in ButOne Information's 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 |
| ButOne Information vs. Agricultural Bank of | ButOne Information vs. Industrial and Commercial | ButOne Information vs. Bank of China | ButOne Information vs. China Construction Bank |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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