Correlation Between Shenzhen Mindray and East Money
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and East Money Information, you can compare the effects of market volatilities on Shenzhen Mindray and East Money 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 East Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and East Money.
Diversification Opportunities for Shenzhen Mindray and East Money
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and East is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and East Money Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on East Money 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 East Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of East Money Information has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and East Money go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and East Money
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to under-perform the East Money. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Mindray Bio Medical is 2.32 times less risky than East Money. The stock trades about -0.08 of its potential returns per unit of risk. The East Money Information is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,107 in East Money Information on September 13, 2024 and sell it today you would earn a total of 658.00 from holding East Money Information or generate 31.23% 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. East Money Information
Performance |
| Timeline |
| Shenzhen Mindray Bio |
| East Money Information |
Shenzhen Mindray and East Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and East Money
The main advantage of trading using opposite Shenzhen Mindray and East Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, East Money 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 East Money will offset losses from the drop in East Money's long position.| Shenzhen Mindray vs. Industrial and Commercial | Shenzhen Mindray vs. Kweichow Moutai Co | Shenzhen Mindray vs. Agricultural Bank of | Shenzhen Mindray vs. China Mobile Limited |
| East Money vs. Kweichow Moutai Co | East Money vs. Shenzhen Mindray Bio Medical | East Money vs. G bits Network Technology | East Money vs. Beijing Roborock 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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