Correlation Between Shenzhen Mindray and Guangxi Wuzhou
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and Guangxi Wuzhou Communications, you can compare the effects of market volatilities on Shenzhen Mindray and Guangxi Wuzhou 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 Guangxi Wuzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and Guangxi Wuzhou.
Diversification Opportunities for Shenzhen Mindray and Guangxi Wuzhou
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Guangxi is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and Guangxi Wuzhou Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Wuzhou Commu 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 Guangxi Wuzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Wuzhou Commu has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and Guangxi Wuzhou go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and Guangxi Wuzhou
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to under-perform the Guangxi Wuzhou. In addition to that, Shenzhen Mindray is 1.23 times more volatile than Guangxi Wuzhou Communications. It trades about -0.23 of its total potential returns per unit of risk. Guangxi Wuzhou Communications is currently generating about 0.13 per unit of volatility. If you would invest 389.00 in Guangxi Wuzhou Communications on September 13, 2024 and sell it today you would earn a total of 16.00 from holding Guangxi Wuzhou Communications or generate 4.11% 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. Guangxi Wuzhou Communications
Performance |
| Timeline |
| Shenzhen Mindray Bio |
| Guangxi Wuzhou Commu |
Shenzhen Mindray and Guangxi Wuzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and Guangxi Wuzhou
The main advantage of trading using opposite Shenzhen Mindray and Guangxi Wuzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, Guangxi Wuzhou 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 Guangxi Wuzhou will offset losses from the drop in Guangxi Wuzhou's long position.| Shenzhen Mindray vs. Industrial and Commercial | Shenzhen Mindray vs. Kweichow Moutai Co | Shenzhen Mindray vs. Agricultural Bank of | Shenzhen Mindray vs. China Mobile Limited |
| Guangxi Wuzhou vs. Kweichow Moutai Co | Guangxi Wuzhou vs. Shenzhen Mindray Bio Medical | Guangxi Wuzhou vs. Jiangsu Pacific Quartz | Guangxi Wuzhou 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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