Correlation Between Beijing Yanjing and Shenzhen Mindray
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Yanjing Brewery and Shenzhen Mindray Bio Medical, you can compare the effects of market volatilities on Beijing Yanjing and Shenzhen Mindray 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 Beijing Yanjing with a short position of Shenzhen Mindray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Yanjing and Shenzhen Mindray.
Diversification Opportunities for Beijing Yanjing and Shenzhen Mindray
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Shenzhen is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Yanjing Brewery and Shenzhen Mindray Bio Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Mindray Bio and Beijing Yanjing 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 Beijing Yanjing Brewery are associated (or correlated) with Shenzhen Mindray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Mindray Bio has no effect on the direction of Beijing Yanjing i.e., Beijing Yanjing and Shenzhen Mindray go up and down completely randomly.
Pair Corralation between Beijing Yanjing and Shenzhen Mindray
Assuming the 90 days trading horizon Beijing Yanjing Brewery is expected to generate 0.83 times more return on investment than Shenzhen Mindray. However, Beijing Yanjing Brewery is 1.21 times less risky than Shenzhen Mindray. It trades about 0.05 of its potential returns per unit of risk. Shenzhen Mindray Bio Medical is currently generating about -0.07 per unit of risk. If you would invest 1,021 in Beijing Yanjing Brewery on September 5, 2024 and sell it today you would earn a total of 16.00 from holding Beijing Yanjing Brewery or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Yanjing Brewery vs. Shenzhen Mindray Bio Medical
Performance |
| Timeline |
| Beijing Yanjing Brewery |
| Shenzhen Mindray Bio |
Beijing Yanjing and Shenzhen Mindray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Yanjing and Shenzhen Mindray
The main advantage of trading using opposite Beijing Yanjing and Shenzhen Mindray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Yanjing position performs unexpectedly, Shenzhen Mindray 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 Shenzhen Mindray will offset losses from the drop in Shenzhen Mindray's long position.| Beijing Yanjing vs. Super Dragon Engineering Plastics | Beijing Yanjing vs. Ningbo Tip Rubber | Beijing Yanjing vs. Jiangnan Mould Plastic | Beijing Yanjing vs. Renxin New Material |
| Shenzhen Mindray vs. Eastroc Beverage Group | Shenzhen Mindray vs. Zhejiang Qianjiang Motorcycle | Shenzhen Mindray vs. Anhui Huilong Agricultural | Shenzhen Mindray vs. Beijing Yanjing Brewery |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |