Correlation Between Tianshui Huatian and Shenzhen Mindray
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By analyzing existing cross correlation between Tianshui Huatian Technology and Shenzhen Mindray Bio Medical, you can compare the effects of market volatilities on Tianshui Huatian 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 Tianshui Huatian with a short position of Shenzhen Mindray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshui Huatian and Shenzhen Mindray.
Diversification Opportunities for Tianshui Huatian and Shenzhen Mindray
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianshui and Shenzhen is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Tianshui Huatian Technology 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 Tianshui Huatian 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 Tianshui Huatian Technology 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 Tianshui Huatian i.e., Tianshui Huatian and Shenzhen Mindray go up and down completely randomly.
Pair Corralation between Tianshui Huatian and Shenzhen Mindray
Assuming the 90 days trading horizon Tianshui Huatian Technology is expected to generate 2.73 times more return on investment than Shenzhen Mindray. However, Tianshui Huatian is 2.73 times more volatile than Shenzhen Mindray Bio Medical. It trades about 0.16 of its potential returns per unit of risk. Shenzhen Mindray Bio Medical is currently generating about 0.01 per unit of risk. If you would invest 1,068 in Tianshui Huatian Technology on August 24, 2024 and sell it today you would earn a total of 165.00 from holding Tianshui Huatian Technology or generate 15.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianshui Huatian Technology vs. Shenzhen Mindray Bio Medical
Performance |
| Timeline |
| Tianshui Huatian Tec |
| Shenzhen Mindray Bio |
Tianshui Huatian and Shenzhen Mindray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshui Huatian and Shenzhen Mindray
The main advantage of trading using opposite Tianshui Huatian and Shenzhen Mindray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshui Huatian 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.| Tianshui Huatian vs. Shanghai Action Education | Tianshui Huatian vs. Jiangsu Yanghe Brewery | Tianshui Huatian vs. Changjiang Publishing Media | Tianshui Huatian vs. Duzhe Publishing Media |
| Shenzhen Mindray vs. Anhui Huilong Agricultural | Shenzhen Mindray vs. China Railway Construction | Shenzhen Mindray vs. Tianshui Huatian Technology | Shenzhen Mindray vs. Lutian Machinery Co |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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