Correlation Between Shenzhen Mindray and Northking Information
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and Northking Information Technology, you can compare the effects of market volatilities on Shenzhen Mindray and Northking Information 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 Northking Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and Northking Information.
Diversification Opportunities for Shenzhen Mindray and Northking Information
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Northking is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and Northking Information Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northking Information 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 Northking Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northking Information has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and Northking Information go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and Northking Information
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to under-perform the Northking Information. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Mindray Bio Medical is 1.58 times less risky than Northking Information. The stock trades about -0.01 of its potential returns per unit of risk. The Northking Information Technology is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,396 in Northking Information Technology on September 28, 2024 and sell it today you would earn a total of 81.00 from holding Northking Information Technology or generate 5.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Mindray Bio Medical vs. Northking Information Technolo
Performance |
| Timeline |
| Shenzhen Mindray Bio |
| Northking Information |
Shenzhen Mindray and Northking Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and Northking Information
The main advantage of trading using opposite Shenzhen Mindray and Northking Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, Northking Information 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 Northking Information will offset losses from the drop in Northking Information's long position.| Shenzhen Mindray vs. New China Life | Shenzhen Mindray vs. Ming Yang Smart | Shenzhen Mindray vs. 159681 | Shenzhen Mindray vs. 159005 |
| Northking Information vs. Kweichow Moutai Co | Northking Information vs. Shenzhen Mindray Bio Medical | Northking Information vs. Jiangsu Pacific Quartz | Northking Information 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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