Correlation Between Shenzhen Mindray and Zoomlion Heavy
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and Zoomlion Heavy Industry, you can compare the effects of market volatilities on Shenzhen Mindray and Zoomlion Heavy 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 Shenzhen Mindray with a short position of Zoomlion Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and Zoomlion Heavy.
Diversification Opportunities for Shenzhen Mindray and Zoomlion Heavy
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Zoomlion is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and Zoomlion Heavy Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoomlion Heavy Industry and Shenzhen Mindray 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 Shenzhen Mindray Bio Medical are associated (or correlated) with Zoomlion Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoomlion Heavy Industry has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and Zoomlion Heavy go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and Zoomlion Heavy
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to under-perform the Zoomlion Heavy. In addition to that, Shenzhen Mindray is 1.25 times more volatile than Zoomlion Heavy Industry. It trades about -0.1 of its total potential returns per unit of risk. Zoomlion Heavy Industry is currently generating about 0.15 per unit of volatility. If you would invest 688.00 in Zoomlion Heavy Industry on September 27, 2024 and sell it today you would earn a total of 31.00 from holding Zoomlion Heavy Industry or generate 4.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shenzhen Mindray Bio Medical vs. Zoomlion Heavy Industry
Performance |
| Timeline |
| Shenzhen Mindray Bio |
| Zoomlion Heavy Industry |
Shenzhen Mindray and Zoomlion Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and Zoomlion Heavy
The main advantage of trading using opposite Shenzhen Mindray and Zoomlion Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, Zoomlion Heavy 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 Zoomlion Heavy will offset losses from the drop in Zoomlion Heavy's long position.| Shenzhen Mindray vs. Songz Automobile Air | Shenzhen Mindray vs. Fiberhome Telecommunication Technologies | Shenzhen Mindray vs. Everdisplay Optronics Shanghai | Shenzhen Mindray vs. Jiangsu Jinling Sports |
| Zoomlion Heavy vs. Industrial and Commercial | Zoomlion Heavy vs. Agricultural Bank of | Zoomlion Heavy vs. China Construction Bank | Zoomlion Heavy vs. Bank of China |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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