Correlation Between Zhuhai Bojay and China Minsheng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhuhai Bojay Electronics and China Minsheng Banking, you can compare the effects of market volatilities on Zhuhai Bojay 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 Zhuhai Bojay with a short position of China Minsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhuhai Bojay and China Minsheng.
Diversification Opportunities for Zhuhai Bojay and China Minsheng
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhuhai and China is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Zhuhai Bojay Electronics 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 Zhuhai Bojay 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 Zhuhai Bojay Electronics 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 Zhuhai Bojay i.e., Zhuhai Bojay and China Minsheng go up and down completely randomly.
Pair Corralation between Zhuhai Bojay and China Minsheng
Assuming the 90 days trading horizon Zhuhai Bojay Electronics is expected to generate 2.01 times more return on investment than China Minsheng. However, Zhuhai Bojay is 2.01 times more volatile than China Minsheng Banking. It trades about 0.16 of its potential returns per unit of risk. China Minsheng Banking is currently generating about 0.11 per unit of risk. If you would invest 2,456 in Zhuhai Bojay Electronics on September 24, 2024 and sell it today you would earn a total of 1,053 from holding Zhuhai Bojay Electronics or generate 42.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Zhuhai Bojay Electronics vs. China Minsheng Banking
Performance |
Timeline |
Zhuhai Bojay Electronics |
China Minsheng Banking |
Zhuhai Bojay and China Minsheng Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhuhai Bojay and China Minsheng
The main advantage of trading using opposite Zhuhai Bojay and China Minsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhuhai Bojay 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.Zhuhai Bojay vs. Bank of China | Zhuhai Bojay vs. Kweichow Moutai Co | Zhuhai Bojay vs. PetroChina Co Ltd | Zhuhai Bojay vs. Bank of Communications |
China Minsheng vs. Kweichow Moutai Co | China Minsheng vs. Contemporary Amperex Technology | China Minsheng vs. G bits Network Technology | China Minsheng vs. BYD Co Ltd |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |