Correlation Between Shenzhen Mindray and Tianshan Aluminum
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and Tianshan Aluminum Group, you can compare the effects of market volatilities on Shenzhen Mindray and Tianshan Aluminum 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 Tianshan Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and Tianshan Aluminum.
Diversification Opportunities for Shenzhen Mindray and Tianshan Aluminum
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Tianshan is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and Tianshan Aluminum Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshan Aluminum 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 Tianshan Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianshan Aluminum has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and Tianshan Aluminum go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and Tianshan Aluminum
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to under-perform the Tianshan Aluminum. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Mindray Bio Medical is 1.25 times less risky than Tianshan Aluminum. The stock trades about -0.39 of its potential returns per unit of risk. The Tianshan Aluminum Group is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 845.00 in Tianshan Aluminum Group on October 15, 2024 and sell it today you would lose (25.00) from holding Tianshan Aluminum Group or give up 2.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Mindray Bio Medical vs. Tianshan Aluminum Group
Performance |
| Timeline |
| Shenzhen Mindray Bio |
| Tianshan Aluminum |
Shenzhen Mindray and Tianshan Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and Tianshan Aluminum
The main advantage of trading using opposite Shenzhen Mindray and Tianshan Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, Tianshan Aluminum 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 Tianshan Aluminum will offset losses from the drop in Tianshan Aluminum'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 |
| Tianshan Aluminum vs. Sportsoul Co Ltd | Tianshan Aluminum vs. Huaibei Mining Holdings | Tianshan Aluminum vs. Western Mining Co | Tianshan Aluminum vs. Shenyang Blue Silver |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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