Correlation Between Shenzhen Mindray and Hunan Investment
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and Hunan Investment Group, you can compare the effects of market volatilities on Shenzhen Mindray and Hunan Investment 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 Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and Hunan Investment.
Diversification Opportunities for Shenzhen Mindray and Hunan Investment
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Hunan is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment 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 Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and Hunan Investment go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and Hunan Investment
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to under-perform the Hunan Investment. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Mindray Bio Medical is 1.81 times less risky than Hunan Investment. The stock trades about -0.14 of its potential returns per unit of risk. The Hunan Investment Group is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 513.00 in Hunan Investment Group on August 28, 2024 and sell it today you would earn a total of 126.00 from holding Hunan Investment Group or generate 24.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Mindray Bio Medical vs. Hunan Investment Group
Performance |
| Timeline |
| Shenzhen Mindray Bio |
| Hunan Investment |
Shenzhen Mindray and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and Hunan Investment
The main advantage of trading using opposite Shenzhen Mindray and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.| Shenzhen Mindray vs. Cultural Investment Holdings | Shenzhen Mindray vs. Jointo Energy Investment | Shenzhen Mindray vs. Chengdu B ray Media | Shenzhen Mindray vs. Luyin Investment Group |
| Hunan Investment vs. Kweichow Moutai Co | Hunan Investment vs. Shenzhen Mindray Bio Medical | Hunan Investment vs. G bits Network Technology | Hunan Investment vs. Shenzhen Transsion Holdings |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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