Correlation Between Shenzhen Mindray and Wonders Information
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and Wonders Information, you can compare the effects of market volatilities on Shenzhen Mindray and Wonders 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 Wonders Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and Wonders Information.
Diversification Opportunities for Shenzhen Mindray and Wonders Information
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Wonders is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and Wonders Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wonders 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 Wonders Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wonders Information has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and Wonders Information go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and Wonders Information
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to under-perform the Wonders Information. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Mindray Bio Medical is 3.33 times less risky than Wonders Information. The stock trades about -0.14 of its potential returns per unit of risk. The Wonders Information is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 805.00 in Wonders Information on August 27, 2024 and sell it today you would earn a total of 114.00 from holding Wonders Information or generate 14.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Mindray Bio Medical vs. Wonders Information
Performance |
| Timeline |
| Shenzhen Mindray Bio |
| Wonders Information |
Shenzhen Mindray and Wonders Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and Wonders Information
The main advantage of trading using opposite Shenzhen Mindray and Wonders Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, Wonders 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 Wonders Information will offset losses from the drop in Wonders Information's long position.| Shenzhen Mindray vs. Cultural Investment Holdings | Shenzhen Mindray vs. Jointo Energy Investment | Shenzhen Mindray vs. Chengdu B ray Media | Shenzhen Mindray vs. Luyin Investment Group |
| Wonders Information vs. Cultural Investment Holdings | Wonders Information vs. Gome Telecom Equipment | Wonders Information vs. Bus Online Co | Wonders Information vs. Holitech Technology Co |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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