Correlation Between Bank Central and China Minsh
Can any of the company-specific risk be diversified away by investing in both Bank Central and China Minsh at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bank Central and China Minsh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Central Asia and China Minsh, you can compare the effects of market volatilities on Bank Central and China Minsh 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 Bank Central with a short position of China Minsh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and China Minsh.
Diversification Opportunities for Bank Central and China Minsh
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and China is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and China Minsh in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Minsh and Bank Central 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 Bank Central Asia are associated (or correlated) with China Minsh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Minsh has no effect on the direction of Bank Central i.e., Bank Central and China Minsh go up and down completely randomly.
Pair Corralation between Bank Central and China Minsh
Assuming the 90 days horizon Bank Central is expected to generate 26.67 times less return on investment than China Minsh. But when comparing it to its historical volatility, Bank Central Asia is 4.97 times less risky than China Minsh. It trades about 0.01 of its potential returns per unit of risk. China Minsh is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 282.00 in China Minsh on November 2, 2024 and sell it today you would earn a total of 194.00 from holding China Minsh or generate 68.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 84.82% |
| Values | Daily Returns |
Bank Central Asia vs. China Minsh
Performance |
| Timeline |
| Bank Central Asia |
| China Minsh |
Bank Central and China Minsh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and China Minsh
The main advantage of trading using opposite Bank Central and China Minsh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central position performs unexpectedly, China Minsh 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 Minsh will offset losses from the drop in China Minsh's long position.| Bank Central vs. Nedbank Group | Bank Central vs. Standard Bank Group | Bank Central vs. Kasikornbank Public Co | Bank Central vs. KBC Groep NV |
| China Minsh vs. Hancock Whitney Corp | China Minsh vs. First Hawaiian | China Minsh vs. DBS Group Holdings | China Minsh vs. United Overseas 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |