Correlation Between China Minsheng and China Railway
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Minsheng Banking and China Railway Construction, you can compare the effects of market volatilities on China Minsheng and China Railway 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 China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minsheng and China Railway.
Diversification Opportunities for China Minsheng and China Railway
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and China is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding China Minsheng Banking and China Railway Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Railway Constr 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 China Railway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Railway Constr has no effect on the direction of China Minsheng i.e., China Minsheng and China Railway go up and down completely randomly.
Pair Corralation between China Minsheng and China Railway
Assuming the 90 days trading horizon China Minsheng Banking is expected to generate 0.72 times more return on investment than China Railway. However, China Minsheng Banking is 1.38 times less risky than China Railway. It trades about 0.02 of its potential returns per unit of risk. China Railway Construction is currently generating about 0.0 per unit of risk. If you would invest 388.00 in China Minsheng Banking on August 28, 2024 and sell it today you would earn a total of 1.00 from holding China Minsheng Banking or generate 0.26% 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. China Railway Construction
Performance |
| Timeline |
| China Minsheng Banking |
| China Railway Constr |
China Minsheng and China Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Minsheng and China Railway
The main advantage of trading using opposite China Minsheng and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minsheng position performs unexpectedly, China Railway 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 China Railway will offset losses from the drop in China Railway's long position.| China Minsheng vs. Agricultural Bank of | China Minsheng vs. Industrial and Commercial | China Minsheng vs. Bank of China | China Minsheng vs. China Construction Bank |
| China Railway vs. Chengtun Mining Group | China Railway vs. Shengda Mining Co | China Railway vs. Juewei Food Co | China Railway vs. Guangdong Jingyi Metal |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |