Correlation Between Shenzhen Mindray and Guocheng Mining
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and Guocheng Mining Co, you can compare the effects of market volatilities on Shenzhen Mindray and Guocheng Mining 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 Guocheng Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and Guocheng Mining.
Diversification Opportunities for Shenzhen Mindray and Guocheng Mining
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Guocheng is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and Guocheng Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guocheng Mining 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 Guocheng Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guocheng Mining has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and Guocheng Mining go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and Guocheng Mining
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to under-perform the Guocheng Mining. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Mindray Bio Medical is 1.39 times less risky than Guocheng Mining. The stock trades about 0.0 of its potential returns per unit of risk. The Guocheng Mining Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,675 in Guocheng Mining Co on September 13, 2024 and sell it today you would lose (145.00) from holding Guocheng Mining Co or give up 8.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Mindray Bio Medical vs. Guocheng Mining Co
Performance |
| Timeline |
| Shenzhen Mindray Bio |
| Guocheng Mining |
Shenzhen Mindray and Guocheng Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and Guocheng Mining
The main advantage of trading using opposite Shenzhen Mindray and Guocheng Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, Guocheng Mining 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 Guocheng Mining will offset losses from the drop in Guocheng Mining's long position.| Shenzhen Mindray vs. Industrial and Commercial | Shenzhen Mindray vs. Kweichow Moutai Co | Shenzhen Mindray vs. Agricultural Bank of | Shenzhen Mindray vs. China Mobile Limited |
| Guocheng Mining vs. Cambricon Technologies Corp | Guocheng Mining vs. Loongson Technology Corp | Guocheng Mining vs. Shenzhen Fortune Trend | Guocheng Mining vs. Chongqing Road Bridge |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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