Correlation Between China Merchants and Ningxia Xiaoming
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Merchants Bank and Ningxia Xiaoming Agriculture, you can compare the effects of market volatilities on China Merchants and Ningxia Xiaoming 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 Ningxia Xiaoming. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Merchants and Ningxia Xiaoming.
Diversification Opportunities for China Merchants and Ningxia Xiaoming
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Ningxia is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding China Merchants Bank and Ningxia Xiaoming Agriculture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningxia Xiaoming Agr 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 Ningxia Xiaoming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningxia Xiaoming Agr has no effect on the direction of China Merchants i.e., China Merchants and Ningxia Xiaoming go up and down completely randomly.
Pair Corralation between China Merchants and Ningxia Xiaoming
Assuming the 90 days trading horizon China Merchants Bank is expected to generate 0.41 times more return on investment than Ningxia Xiaoming. However, China Merchants Bank is 2.43 times less risky than Ningxia Xiaoming. It trades about 0.03 of its potential returns per unit of risk. Ningxia Xiaoming Agriculture is currently generating about -0.09 per unit of risk. If you would invest 3,922 in China Merchants Bank on October 25, 2024 and sell it today you would earn a total of 23.00 from holding China Merchants Bank or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Merchants Bank vs. Ningxia Xiaoming Agriculture
Performance |
| Timeline |
| China Merchants Bank |
| Ningxia Xiaoming Agr |
China Merchants and Ningxia Xiaoming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Merchants and Ningxia Xiaoming
The main advantage of trading using opposite China Merchants and Ningxia Xiaoming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Merchants position performs unexpectedly, Ningxia Xiaoming 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 Ningxia Xiaoming will offset losses from the drop in Ningxia Xiaoming's long position.| China Merchants vs. Jilin OLED Material | China Merchants vs. Konfoong Materials International | China Merchants vs. Sichuan Hebang Biotechnology | China Merchants vs. Ningbo Tip Rubber |
| Ningxia Xiaoming vs. Agricultural Bank of | Ningxia Xiaoming vs. Postal Savings Bank | Ningxia Xiaoming vs. Bank of Communications | Ningxia Xiaoming vs. China Merchants 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |