Correlation Between China Minsheng and Industrial
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By analyzing existing cross correlation between China Minsheng Banking and Industrial and Commercial, you can compare the effects of market volatilities on China Minsheng and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minsheng and Industrial.
Diversification Opportunities for China Minsheng and Industrial
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Industrial is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding China Minsheng Banking and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of China Minsheng i.e., China Minsheng and Industrial go up and down completely randomly.
Pair Corralation between China Minsheng and Industrial
Assuming the 90 days trading horizon China Minsheng is expected to generate 2.81 times less return on investment than Industrial. In addition to that, China Minsheng is 1.09 times more volatile than Industrial and Commercial. It trades about 0.03 of its total potential returns per unit of risk. Industrial and Commercial is currently generating about 0.1 per unit of volatility. If you would invest 479.00 in Industrial and Commercial on September 14, 2024 and sell it today you would earn a total of 163.00 from holding Industrial and Commercial or generate 34.03% 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. Industrial and Commercial
Performance |
| Timeline |
| China Minsheng Banking |
| Industrial and Commercial |
China Minsheng and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Minsheng and Industrial
The main advantage of trading using opposite China Minsheng and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minsheng position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.| China Minsheng vs. Suzhou Weizhixiang Food | China Minsheng vs. Zhengzhou Qianweiyangchu Food | China Minsheng vs. HaiXin Foods Co | China Minsheng vs. Jinhe Biotechnology Co |
| Industrial vs. Allmed Medical Products | Industrial vs. Blue Sail Medical | Industrial vs. Yingde Greatchem Chemicals | Industrial vs. Zhongzhu Medical Holdings |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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