Correlation Between Shenzhen Mindray and Wuhan Hvsen
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on Shenzhen Mindray and Wuhan Hvsen 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 Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and Wuhan Hvsen.
Diversification Opportunities for Shenzhen Mindray and Wuhan Hvsen
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Wuhan is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and Wuhan Hvsen Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Hvsen Biotechnology 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 Wuhan Hvsen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Hvsen Biotechnology has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and Wuhan Hvsen
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to under-perform the Wuhan Hvsen. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Mindray Bio Medical is 1.3 times less risky than Wuhan Hvsen. The stock trades about -0.07 of its potential returns per unit of risk. The Wuhan Hvsen Biotechnology is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 1,100 in Wuhan Hvsen Biotechnology on September 5, 2024 and sell it today you would earn a total of 196.00 from holding Wuhan Hvsen Biotechnology or generate 17.82% 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. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| Shenzhen Mindray Bio |
| Wuhan Hvsen Biotechnology |
Shenzhen Mindray and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and Wuhan Hvsen
The main advantage of trading using opposite Shenzhen Mindray and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, Wuhan Hvsen 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 Wuhan Hvsen will offset losses from the drop in Wuhan Hvsen's long position.| Shenzhen Mindray vs. Eastroc Beverage Group | Shenzhen Mindray vs. Zhejiang Qianjiang Motorcycle | Shenzhen Mindray vs. Anhui Huilong Agricultural | Shenzhen Mindray vs. Beijing Yanjing Brewery |
| Wuhan Hvsen vs. Fujian Anjoy Foods | Wuhan Hvsen vs. Great Sun Foods Co | Wuhan Hvsen vs. Beijing Sanyuan Foods | Wuhan Hvsen vs. Muyuan Foodstuff 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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