Correlation Between Shanghai Yaoji and Shenzhen Mindray
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By analyzing existing cross correlation between Shanghai Yaoji Playing and Shenzhen Mindray Bio Medical, you can compare the effects of market volatilities on Shanghai Yaoji 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 Shanghai Yaoji with a short position of Shenzhen Mindray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yaoji and Shenzhen Mindray.
Diversification Opportunities for Shanghai Yaoji and Shenzhen Mindray
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shanghai and Shenzhen is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yaoji Playing 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 Shanghai Yaoji 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 Shanghai Yaoji Playing 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 Shanghai Yaoji i.e., Shanghai Yaoji and Shenzhen Mindray go up and down completely randomly.
Pair Corralation between Shanghai Yaoji and Shenzhen Mindray
Assuming the 90 days trading horizon Shanghai Yaoji Playing is expected to generate 2.92 times more return on investment than Shenzhen Mindray. However, Shanghai Yaoji is 2.92 times more volatile than Shenzhen Mindray Bio Medical. It trades about 0.07 of its potential returns per unit of risk. Shenzhen Mindray Bio Medical is currently generating about -0.35 per unit of risk. If you would invest 2,734 in Shanghai Yaoji Playing on October 28, 2024 and sell it today you would earn a total of 116.00 from holding Shanghai Yaoji Playing or generate 4.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yaoji Playing vs. Shenzhen Mindray Bio Medical
Performance |
| Timeline |
| Shanghai Yaoji Playing |
| Shenzhen Mindray Bio |
Shanghai Yaoji and Shenzhen Mindray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yaoji and Shenzhen Mindray
The main advantage of trading using opposite Shanghai Yaoji and Shenzhen Mindray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yaoji 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.| Shanghai Yaoji vs. Yindu Kitchen Equipment | Shanghai Yaoji vs. Guangzhou Jointas Chemical | Shanghai Yaoji vs. Dymatic Chemicals | Shanghai Yaoji vs. Shandong Polymer Biochemicals |
| Shenzhen Mindray vs. Shaanxi Construction Machinery | Shenzhen Mindray vs. Zhejiang Yinlun Machinery | Shenzhen Mindray vs. Shanghai Construction Group | Shenzhen Mindray vs. Dazhong Transportation Group |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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