Correlation Between China Railway and China Minsheng
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By analyzing existing cross correlation between China Railway Construction and China Minsheng Banking, you can compare the effects of market volatilities on China Railway and China Minsheng 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 Railway with a short position of China Minsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and China Minsheng.
Diversification Opportunities for China Railway and China Minsheng
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and China is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Construction and China Minsheng Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Minsheng Banking and China Railway 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 Railway Construction are associated (or correlated) with China Minsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Minsheng Banking has no effect on the direction of China Railway i.e., China Railway and China Minsheng go up and down completely randomly.
Pair Corralation between China Railway and China Minsheng
Assuming the 90 days trading horizon China Railway Construction is expected to generate 1.47 times more return on investment than China Minsheng. However, China Railway is 1.47 times more volatile than China Minsheng Banking. It trades about 0.03 of its potential returns per unit of risk. China Minsheng Banking is currently generating about 0.02 per unit of risk. If you would invest 867.00 in China Railway Construction on September 1, 2024 and sell it today you would earn a total of 58.00 from holding China Railway Construction or generate 6.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.19% |
| Values | Daily Returns |
China Railway Construction vs. China Minsheng Banking
Performance |
| Timeline |
| China Railway Constr |
| China Minsheng Banking |
China Railway and China Minsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and China Minsheng
The main advantage of trading using opposite China Railway and China Minsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway position performs unexpectedly, China Minsheng 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 Minsheng will offset losses from the drop in China Minsheng's long position.| China Railway vs. Harbin Air Conditioning | China Railway vs. MayAir Technology Co | China Railway vs. Heilongjiang Publishing Media | China Railway vs. Shandong Publishing Media |
| China Minsheng vs. V V Food | China Minsheng vs. Juewei Food Co | China Minsheng vs. 360 Security Technology | China Minsheng vs. Guangdong Xiongsu Technology |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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