Correlation Between Anhui Gujing and Shenzhen Mindray
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By analyzing existing cross correlation between Anhui Gujing Distillery and Shenzhen Mindray Bio Medical, you can compare the effects of market volatilities on Anhui Gujing 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 Anhui Gujing with a short position of Shenzhen Mindray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Shenzhen Mindray.
Diversification Opportunities for Anhui Gujing and Shenzhen Mindray
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Shenzhen is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery 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 Anhui Gujing 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 Anhui Gujing Distillery 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 Anhui Gujing i.e., Anhui Gujing and Shenzhen Mindray go up and down completely randomly.
Pair Corralation between Anhui Gujing and Shenzhen Mindray
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to generate 0.84 times more return on investment than Shenzhen Mindray. However, Anhui Gujing Distillery is 1.19 times less risky than Shenzhen Mindray. It trades about 0.1 of its potential returns per unit of risk. Shenzhen Mindray Bio Medical is currently generating about -0.27 per unit of risk. If you would invest 11,066 in Anhui Gujing Distillery on November 2, 2024 and sell it today you would earn a total of 214.00 from holding Anhui Gujing Distillery or generate 1.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Gujing Distillery vs. Shenzhen Mindray Bio Medical
Performance |
| Timeline |
| Anhui Gujing Distillery |
| Shenzhen Mindray Bio |
Anhui Gujing and Shenzhen Mindray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Gujing and Shenzhen Mindray
The main advantage of trading using opposite Anhui Gujing and Shenzhen Mindray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing 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.| Anhui Gujing vs. Qijing Machinery | Anhui Gujing vs. Nanxing Furniture Machinery | Anhui Gujing vs. Anhui Gujing Distillery | Anhui Gujing vs. AVIC Fund Management |
| Shenzhen Mindray vs. Uroica Mining Safety | Shenzhen Mindray vs. Anhui Jianghuai Automobile | Shenzhen Mindray vs. Xiangyang Automobile Bearing | Shenzhen Mindray vs. Hainan Mining 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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