Correlation Between China Merchants and Soyea Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Merchants Bank and Soyea Technology Co, you can compare the effects of market volatilities on China Merchants and Soyea Technology 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 Merchants with a short position of Soyea Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Merchants and Soyea Technology.
Diversification Opportunities for China Merchants and Soyea Technology
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Soyea is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding China Merchants Bank and Soyea Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soyea Technology and China Merchants 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 Merchants Bank are associated (or correlated) with Soyea Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soyea Technology has no effect on the direction of China Merchants i.e., China Merchants and Soyea Technology go up and down completely randomly.
Pair Corralation between China Merchants and Soyea Technology
Assuming the 90 days trading horizon China Merchants Bank is expected to under-perform the Soyea Technology. But the stock apears to be less risky and, when comparing its historical volatility, China Merchants Bank is 2.38 times less risky than Soyea Technology. The stock trades about -0.18 of its potential returns per unit of risk. The Soyea Technology Co is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 479.00 in Soyea Technology Co on August 29, 2024 and sell it today you would earn a total of 68.00 from holding Soyea Technology Co or generate 14.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Merchants Bank vs. Soyea Technology Co
Performance |
| Timeline |
| China Merchants Bank |
| Soyea Technology |
China Merchants and Soyea Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Merchants and Soyea Technology
The main advantage of trading using opposite China Merchants and Soyea Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Merchants position performs unexpectedly, Soyea Technology 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 Soyea Technology will offset losses from the drop in Soyea Technology's long position.| China Merchants vs. Sunwave Communications Co | China Merchants vs. Goldlok Toys Holdings | China Merchants vs. Eastern Communications Co | China Merchants vs. Wuhan Yangtze Communication |
| Soyea Technology vs. Cambricon Technologies Corp | Soyea Technology vs. Empyrean Technology Co | Soyea Technology vs. Kuang Chi Technologies | Soyea Technology vs. Gansu Jiu Steel |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |