Correlation Between Guangzhou Shangpin and Shenzhen Mindray
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By analyzing existing cross correlation between Guangzhou Shangpin Home and Shenzhen Mindray Bio Medical, you can compare the effects of market volatilities on Guangzhou Shangpin 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 Guangzhou Shangpin with a short position of Shenzhen Mindray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Shangpin and Shenzhen Mindray.
Diversification Opportunities for Guangzhou Shangpin and Shenzhen Mindray
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Shenzhen is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Shangpin Home 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 Guangzhou Shangpin 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 Guangzhou Shangpin Home 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 Guangzhou Shangpin i.e., Guangzhou Shangpin and Shenzhen Mindray go up and down completely randomly.
Pair Corralation between Guangzhou Shangpin and Shenzhen Mindray
Assuming the 90 days trading horizon Guangzhou Shangpin Home is expected to generate 1.18 times more return on investment than Shenzhen Mindray. However, Guangzhou Shangpin is 1.18 times more volatile than Shenzhen Mindray Bio Medical. It trades about 0.3 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 1,293 in Guangzhou Shangpin Home on September 3, 2024 and sell it today you would earn a total of 190.00 from holding Guangzhou Shangpin Home or generate 14.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Shangpin Home vs. Shenzhen Mindray Bio Medical
Performance |
| Timeline |
| Guangzhou Shangpin Home |
| Shenzhen Mindray Bio |
Guangzhou Shangpin and Shenzhen Mindray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Shangpin and Shenzhen Mindray
The main advantage of trading using opposite Guangzhou Shangpin and Shenzhen Mindray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Shangpin 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.| Guangzhou Shangpin vs. PetroChina Co Ltd | Guangzhou Shangpin vs. China Mobile Limited | Guangzhou Shangpin vs. Industrial and Commercial | Guangzhou Shangpin vs. China Life Insurance |
| Shenzhen Mindray vs. Chongqing Shunbo Aluminum | Shenzhen Mindray vs. Quectel Wireless Solutions | Shenzhen Mindray vs. Rising Nonferrous Metals | Shenzhen Mindray vs. Ye Chiu Metal |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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