Correlation Between Shenzhen Mindray and Nuode Investment
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and Nuode Investment Co, you can compare the effects of market volatilities on Shenzhen Mindray and Nuode Investment 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 Nuode Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and Nuode Investment.
Diversification Opportunities for Shenzhen Mindray and Nuode Investment
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Nuode is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and Nuode Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuode Investment 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 Nuode Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuode Investment has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and Nuode Investment go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and Nuode Investment
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to under-perform the Nuode Investment. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Mindray Bio Medical is 2.69 times less risky than Nuode Investment. The stock trades about -0.08 of its potential returns per unit of risk. The Nuode Investment Co is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 407.00 in Nuode Investment Co on August 29, 2024 and sell it today you would earn a total of 64.00 from holding Nuode Investment Co or generate 15.72% 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. Nuode Investment Co
Performance |
| Timeline |
| Shenzhen Mindray Bio |
| Nuode Investment |
Shenzhen Mindray and Nuode Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and Nuode Investment
The main advantage of trading using opposite Shenzhen Mindray and Nuode Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, Nuode Investment 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 Nuode Investment will offset losses from the drop in Nuode Investment's long position.| Shenzhen Mindray vs. Heilongjiang Transport Development | Shenzhen Mindray vs. Peoples Insurance of | Shenzhen Mindray vs. Shaanxi Broadcast TV | Shenzhen Mindray vs. Eastroc Beverage Group |
| Nuode Investment vs. Kweichow Moutai Co | Nuode Investment vs. Shenzhen Mindray Bio Medical | Nuode Investment vs. Jiangsu Pacific Quartz | Nuode Investment 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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