Correlation Between Shenzhen Mindray and Sichuan Fulin
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and Sichuan Fulin Transportation, you can compare the effects of market volatilities on Shenzhen Mindray and Sichuan Fulin 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 Sichuan Fulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and Sichuan Fulin.
Diversification Opportunities for Shenzhen Mindray and Sichuan Fulin
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shenzhen and Sichuan is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and Sichuan Fulin Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Fulin Transp 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 Sichuan Fulin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Fulin Transp has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and Sichuan Fulin go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and Sichuan Fulin
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to under-perform the Sichuan Fulin. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Mindray Bio Medical is 1.81 times less risky than Sichuan Fulin. The stock trades about -0.15 of its potential returns per unit of risk. The Sichuan Fulin Transportation is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 694.00 in Sichuan Fulin Transportation on September 28, 2024 and sell it today you would earn a total of 37.00 from holding Sichuan Fulin Transportation or generate 5.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Mindray Bio Medical vs. Sichuan Fulin Transportation
Performance |
| Timeline |
| Shenzhen Mindray Bio |
| Sichuan Fulin Transp |
Shenzhen Mindray and Sichuan Fulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and Sichuan Fulin
The main advantage of trading using opposite Shenzhen Mindray and Sichuan Fulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, Sichuan Fulin 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 Sichuan Fulin will offset losses from the drop in Sichuan Fulin's long position.| Shenzhen Mindray vs. New China Life | Shenzhen Mindray vs. Ming Yang Smart | Shenzhen Mindray vs. 159681 | Shenzhen Mindray vs. 159005 |
| Sichuan Fulin vs. Kweichow Moutai Co | Sichuan Fulin vs. Shenzhen Mindray Bio Medical | Sichuan Fulin vs. Jiangsu Pacific Quartz | Sichuan Fulin 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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