Correlation Between Shenzhen Mindray and Highbroad Advanced
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and Highbroad Advanced Material, you can compare the effects of market volatilities on Shenzhen Mindray and Highbroad Advanced 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 Highbroad Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and Highbroad Advanced.
Diversification Opportunities for Shenzhen Mindray and Highbroad Advanced
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Highbroad is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and Highbroad Advanced Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highbroad Advanced 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 Highbroad Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highbroad Advanced has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and Highbroad Advanced go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and Highbroad Advanced
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to under-perform the Highbroad Advanced. 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 Highbroad Advanced. The stock trades about -0.26 of its potential returns per unit of risk. The Highbroad Advanced Material is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,307 in Highbroad Advanced Material on November 7, 2024 and sell it today you would earn a total of 167.00 from holding Highbroad Advanced Material or generate 12.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Mindray Bio Medical vs. Highbroad Advanced Material
Performance |
| Timeline |
| Shenzhen Mindray Bio |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Highbroad Advanced |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shenzhen Mindray and Highbroad Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and Highbroad Advanced
The main advantage of trading using opposite Shenzhen Mindray and Highbroad Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, Highbroad Advanced 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 Highbroad Advanced will offset losses from the drop in Highbroad Advanced's long position.The idea behind Shenzhen Mindray Bio Medical and Highbroad Advanced Material pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |