Correlation Between Shenzhen Mindray and Beijing Bewinner
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and Beijing Bewinner Communications, you can compare the effects of market volatilities on Shenzhen Mindray and Beijing Bewinner 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 Beijing Bewinner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and Beijing Bewinner.
Diversification Opportunities for Shenzhen Mindray and Beijing Bewinner
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and Beijing is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and Beijing Bewinner Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Bewinner Com 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 Beijing Bewinner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Bewinner Com has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and Beijing Bewinner go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and Beijing Bewinner
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to generate 0.28 times more return on investment than Beijing Bewinner. However, Shenzhen Mindray Bio Medical is 3.6 times less risky than Beijing Bewinner. It trades about -0.45 of its potential returns per unit of risk. Beijing Bewinner Communications is currently generating about -0.4 per unit of risk. If you would invest 25,917 in Shenzhen Mindray Bio Medical on October 14, 2024 and sell it today you would lose (2,817) from holding Shenzhen Mindray Bio Medical or give up 10.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Mindray Bio Medical vs. Beijing Bewinner Communication
Performance |
| Timeline |
| Shenzhen Mindray Bio |
| Beijing Bewinner Com |
Shenzhen Mindray and Beijing Bewinner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and Beijing Bewinner
The main advantage of trading using opposite Shenzhen Mindray and Beijing Bewinner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, Beijing Bewinner 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 Beijing Bewinner will offset losses from the drop in Beijing Bewinner's long position.| Shenzhen Mindray vs. Qumei Furniture Group | Shenzhen Mindray vs. UE Furniture Co | Shenzhen Mindray vs. Shanghai Yaoji Playing | Shenzhen Mindray vs. Shenzhen SDG Information |
| Beijing Bewinner vs. Kweichow Moutai Co | Beijing Bewinner vs. Shenzhen Mindray Bio Medical | Beijing Bewinner vs. Jiangsu Pacific Quartz | Beijing Bewinner 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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