Correlation Between Shenzhen Mindray and Cangzhou Mingzhu
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and Cangzhou Mingzhu Plastic, you can compare the effects of market volatilities on Shenzhen Mindray and Cangzhou Mingzhu 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 Cangzhou Mingzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and Cangzhou Mingzhu.
Diversification Opportunities for Shenzhen Mindray and Cangzhou Mingzhu
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Cangzhou is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and Cangzhou Mingzhu Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cangzhou Mingzhu Plastic 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 Cangzhou Mingzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cangzhou Mingzhu Plastic has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and Cangzhou Mingzhu go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and Cangzhou Mingzhu
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to under-perform the Cangzhou Mingzhu. In addition to that, Shenzhen Mindray is 1.1 times more volatile than Cangzhou Mingzhu Plastic. It trades about -0.07 of its total potential returns per unit of risk. Cangzhou Mingzhu Plastic is currently generating about 0.1 per unit of volatility. If you would invest 348.00 in Cangzhou Mingzhu Plastic on August 31, 2024 and sell it today you would earn a total of 13.00 from holding Cangzhou Mingzhu Plastic or generate 3.74% 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. Cangzhou Mingzhu Plastic
Performance |
| Timeline |
| Shenzhen Mindray Bio |
| Cangzhou Mingzhu Plastic |
Shenzhen Mindray and Cangzhou Mingzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and Cangzhou Mingzhu
The main advantage of trading using opposite Shenzhen Mindray and Cangzhou Mingzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, Cangzhou Mingzhu 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 Cangzhou Mingzhu will offset losses from the drop in Cangzhou Mingzhu's long position.| Shenzhen Mindray vs. Shenzhen Kexin Communication | Shenzhen Mindray vs. Shanghai Metersbonwe FashionAccessories | Shenzhen Mindray vs. Cicc Fund Management | Shenzhen Mindray vs. Sanbo Hospital Management |
| Cangzhou Mingzhu vs. AVIC Fund Management | Cangzhou Mingzhu vs. Lingyuan Iron Steel | Cangzhou Mingzhu vs. Aofu Environmental Technology | Cangzhou Mingzhu vs. JCHX Mining Management |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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