Correlation Between Wuliangye Yibin and Shenzhen Mindray
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By analyzing existing cross correlation between Wuliangye Yibin Co and Shenzhen Mindray Bio Medical, you can compare the effects of market volatilities on Wuliangye Yibin 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 Wuliangye Yibin with a short position of Shenzhen Mindray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuliangye Yibin and Shenzhen Mindray.
Diversification Opportunities for Wuliangye Yibin and Shenzhen Mindray
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wuliangye and Shenzhen is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Wuliangye Yibin Co 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 Wuliangye Yibin 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 Wuliangye Yibin Co 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 Wuliangye Yibin i.e., Wuliangye Yibin and Shenzhen Mindray go up and down completely randomly.
Pair Corralation between Wuliangye Yibin and Shenzhen Mindray
Assuming the 90 days trading horizon Wuliangye Yibin Co is expected to generate 1.29 times more return on investment than Shenzhen Mindray. However, Wuliangye Yibin is 1.29 times more volatile than Shenzhen Mindray Bio Medical. It trades about -0.03 of its potential returns per unit of risk. Shenzhen Mindray Bio Medical is currently generating about -0.13 per unit of risk. If you would invest 14,811 in Wuliangye Yibin Co on August 26, 2024 and sell it today you would lose (322.00) from holding Wuliangye Yibin Co or give up 2.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuliangye Yibin Co vs. Shenzhen Mindray Bio Medical
Performance |
| Timeline |
| Wuliangye Yibin |
| Shenzhen Mindray Bio |
Wuliangye Yibin and Shenzhen Mindray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuliangye Yibin and Shenzhen Mindray
The main advantage of trading using opposite Wuliangye Yibin and Shenzhen Mindray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuliangye Yibin 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.| Wuliangye Yibin vs. Gome Telecom Equipment | Wuliangye Yibin vs. Jonjee Hi tech Industrial | Wuliangye Yibin vs. Sunwave Communications Co | Wuliangye Yibin vs. Nanjing Putian Telecommunications |
| Shenzhen Mindray vs. Luolai Home Textile | Shenzhen Mindray vs. Ziel Home Furnishing | Shenzhen Mindray vs. Songz Automobile Air | Shenzhen Mindray vs. Guangdong Shenglu Telecommunication |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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