Correlation Between China Minsheng and China Everbright
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By analyzing existing cross correlation between China Minsheng Banking and China Everbright Bank, you can compare the effects of market volatilities on China Minsheng and China Everbright 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 Everbright. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minsheng and China Everbright.
Diversification Opportunities for China Minsheng and China Everbright
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and China is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding China Minsheng Banking and China Everbright Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Everbright Bank 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 Everbright. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Everbright Bank has no effect on the direction of China Minsheng i.e., China Minsheng and China Everbright go up and down completely randomly.
Pair Corralation between China Minsheng and China Everbright
Assuming the 90 days trading horizon China Minsheng is expected to generate 1.52 times less return on investment than China Everbright. But when comparing it to its historical volatility, China Minsheng Banking is 1.36 times less risky than China Everbright. It trades about 0.03 of its potential returns per unit of risk. China Everbright Bank is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 383.00 in China Everbright Bank on October 26, 2024 and sell it today you would earn a total of 4.00 from holding China Everbright Bank or generate 1.04% 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. China Everbright Bank
Performance |
| Timeline |
| China Minsheng Banking |
| China Everbright Bank |
China Minsheng and China Everbright Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Minsheng and China Everbright
The main advantage of trading using opposite China Minsheng and China Everbright positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minsheng position performs unexpectedly, China Everbright 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 Everbright will offset losses from the drop in China Everbright's long position.| China Minsheng vs. Guangdong Silvere Sci | China Minsheng vs. Chengtun Mining Group | China Minsheng vs. Shenyang Blue Silver | China Minsheng vs. JCHX Mining Management |
| China Everbright vs. China Life Insurance | China Everbright vs. Cinda Securities Co | China Everbright vs. Piotech Inc A | China Everbright vs. Dongxing Sec 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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