Correlation Between China Merchants and Camel Group
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By analyzing existing cross correlation between China Merchants Bank and Camel Group Co, you can compare the effects of market volatilities on China Merchants and Camel Group 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 Camel Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Merchants and Camel Group.
Diversification Opportunities for China Merchants and Camel Group
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Camel is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding China Merchants Bank and Camel Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camel Group 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 Camel Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camel Group has no effect on the direction of China Merchants i.e., China Merchants and Camel Group go up and down completely randomly.
Pair Corralation between China Merchants and Camel Group
Assuming the 90 days trading horizon China Merchants Bank is expected to generate 0.93 times more return on investment than Camel Group. However, China Merchants Bank is 1.08 times less risky than Camel Group. It trades about 0.02 of its potential returns per unit of risk. Camel Group Co is currently generating about 0.0 per unit of risk. If you would invest 3,421 in China Merchants Bank on August 24, 2024 and sell it today you would earn a total of 224.00 from holding China Merchants Bank or generate 6.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Merchants Bank vs. Camel Group Co
Performance |
| Timeline |
| China Merchants Bank |
| Camel Group |
China Merchants and Camel Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Merchants and Camel Group
The main advantage of trading using opposite China Merchants and Camel Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Merchants position performs unexpectedly, Camel Group 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 Camel Group will offset losses from the drop in Camel Group's long position.| China Merchants vs. Dymatic Chemicals | China Merchants vs. Semiconductor Manufacturing Electronics | China Merchants vs. Double Medical Technology | China Merchants vs. CareRay Digital Medical |
| Camel Group vs. Der International Home | Camel Group vs. Nanxing Furniture Machinery | Camel Group vs. Healthcare Co | Camel Group vs. Zoy Home Furnishing |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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