Correlation Between Shenzhen Mindray and BlueFocus Communication
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and BlueFocus Communication Group, you can compare the effects of market volatilities on Shenzhen Mindray and BlueFocus Communication 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 BlueFocus Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and BlueFocus Communication.
Diversification Opportunities for Shenzhen Mindray and BlueFocus Communication
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and BlueFocus is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and BlueFocus Communication Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlueFocus Communication 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 BlueFocus Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlueFocus Communication has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and BlueFocus Communication go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and BlueFocus Communication
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to under-perform the BlueFocus Communication. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Mindray Bio Medical is 2.04 times less risky than BlueFocus Communication. The stock trades about -0.03 of its potential returns per unit of risk. The BlueFocus Communication Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 803.00 in BlueFocus Communication Group on January 25, 2025 and sell it today you would earn a total of 24.00 from holding BlueFocus Communication Group or generate 2.99% 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. BlueFocus Communication Group
Performance |
| Timeline |
| Shenzhen Mindray Bio |
| BlueFocus Communication |
Shenzhen Mindray and BlueFocus Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and BlueFocus Communication
The main advantage of trading using opposite Shenzhen Mindray and BlueFocus Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, BlueFocus Communication 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 BlueFocus Communication will offset losses from the drop in BlueFocus Communication's long position.| Shenzhen Mindray vs. NBTM New Materials | Shenzhen Mindray vs. Sanxiang Advanced Materials | Shenzhen Mindray vs. Super Dragon Engineering Plastics | Shenzhen Mindray vs. Shuhua Sports Co |
| BlueFocus Communication vs. CITIC Metal Co | BlueFocus Communication vs. Lonkey Industrial Co | BlueFocus Communication vs. Guangdong Jingyi Metal | BlueFocus Communication vs. Cansino Biologics |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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