Correlation Between Shenzhen Mindray and Ningbo MedicalSystem
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and Ningbo MedicalSystem Biotechnology, you can compare the effects of market volatilities on Shenzhen Mindray and Ningbo MedicalSystem 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 Ningbo MedicalSystem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and Ningbo MedicalSystem.
Diversification Opportunities for Shenzhen Mindray and Ningbo MedicalSystem
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Ningbo is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and Ningbo MedicalSystem Biotechno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo MedicalSystem 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 Ningbo MedicalSystem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo MedicalSystem has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and Ningbo MedicalSystem go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and Ningbo MedicalSystem
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to under-perform the Ningbo MedicalSystem. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Mindray Bio Medical is 1.27 times less risky than Ningbo MedicalSystem. The stock trades about -0.01 of its potential returns per unit of risk. The Ningbo MedicalSystem Biotechnology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,169 in Ningbo MedicalSystem Biotechnology on September 4, 2024 and sell it today you would lose (3.00) from holding Ningbo MedicalSystem Biotechnology or give up 0.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Mindray Bio Medical vs. Ningbo MedicalSystem Biotechno
Performance |
| Timeline |
| Shenzhen Mindray Bio |
| Ningbo MedicalSystem |
Shenzhen Mindray and Ningbo MedicalSystem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and Ningbo MedicalSystem
The main advantage of trading using opposite Shenzhen Mindray and Ningbo MedicalSystem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, Ningbo MedicalSystem 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 Ningbo MedicalSystem will offset losses from the drop in Ningbo MedicalSystem's long position.| Shenzhen Mindray vs. Hangzhou Gaoxin Rubber | Shenzhen Mindray vs. Guangzhou Tinci Materials | Shenzhen Mindray vs. Huatian Hotel Group | Shenzhen Mindray vs. Xinke Material |
| Ningbo MedicalSystem vs. Kweichow Moutai Co | Ningbo MedicalSystem vs. Shenzhen Mindray Bio Medical | Ningbo MedicalSystem vs. Jiangsu Pacific Quartz | Ningbo MedicalSystem 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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