Correlation Between Shenzhen Mindray and Guangzhou Seagull
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on Shenzhen Mindray and Guangzhou Seagull 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 Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and Guangzhou Seagull.
Diversification Opportunities for Shenzhen Mindray and Guangzhou Seagull
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Guangzhou is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen 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 Guangzhou Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and Guangzhou Seagull
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to under-perform the Guangzhou Seagull. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Mindray Bio Medical is 1.17 times less risky than Guangzhou Seagull. The stock trades about -0.14 of its potential returns per unit of risk. The Guangzhou Seagull Kitchen is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 318.00 in Guangzhou Seagull Kitchen on September 14, 2024 and sell it today you would earn a total of 53.00 from holding Guangzhou Seagull Kitchen or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Mindray Bio Medical vs. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| Shenzhen Mindray Bio |
| Guangzhou Seagull Kitchen |
Shenzhen Mindray and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and Guangzhou Seagull
The main advantage of trading using opposite Shenzhen Mindray and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, Guangzhou Seagull 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 Guangzhou Seagull will offset losses from the drop in Guangzhou Seagull's long position.| Shenzhen Mindray vs. Jiangsu Financial Leasing | Shenzhen Mindray vs. Ningbo Fangzheng Automobile | Shenzhen Mindray vs. Xiangyang Automobile Bearing | Shenzhen Mindray vs. Dongfeng Automobile Co |
| Guangzhou Seagull vs. Kweichow Moutai Co | Guangzhou Seagull vs. Shenzhen Mindray Bio Medical | Guangzhou Seagull vs. Jiangsu Pacific Quartz | Guangzhou Seagull vs. G bits Network Technology |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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