Correlation Between Shenzhen Mindray and Shenzhen Hifuture
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and Shenzhen Hifuture Electric, you can compare the effects of market volatilities on Shenzhen Mindray and Shenzhen Hifuture 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 Shenzhen Hifuture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and Shenzhen Hifuture.
Diversification Opportunities for Shenzhen Mindray and Shenzhen Hifuture
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and Shenzhen is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and Shenzhen Hifuture Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Hifuture 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 Shenzhen Hifuture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Hifuture has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and Shenzhen Hifuture go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and Shenzhen Hifuture
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to under-perform the Shenzhen Hifuture. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Mindray Bio Medical is 1.45 times less risky than Shenzhen Hifuture. The stock trades about -0.03 of its potential returns per unit of risk. The Shenzhen Hifuture Electric is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 229.00 in Shenzhen Hifuture Electric on September 2, 2024 and sell it today you would earn a total of 53.00 from holding Shenzhen Hifuture Electric or generate 23.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Mindray Bio Medical vs. Shenzhen Hifuture Electric
Performance |
| Timeline |
| Shenzhen Mindray Bio |
| Shenzhen Hifuture |
Shenzhen Mindray and Shenzhen Hifuture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and Shenzhen Hifuture
The main advantage of trading using opposite Shenzhen Mindray and Shenzhen Hifuture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, Shenzhen Hifuture 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 Shenzhen Hifuture will offset losses from the drop in Shenzhen Hifuture's long position.| Shenzhen Mindray vs. Sunwave Communications Co | Shenzhen Mindray vs. Double Medical Technology | Shenzhen Mindray vs. Hengkang Medical Group | Shenzhen Mindray vs. Allwin Telecommunication Co |
| Shenzhen Hifuture vs. Kweichow Moutai Co | Shenzhen Hifuture vs. Shenzhen Mindray Bio Medical | Shenzhen Hifuture vs. Jiangsu Pacific Quartz | Shenzhen Hifuture 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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