Correlation Between Shenzhen Mindray and Tsingtao Brewery
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and Tsingtao Brewery Co, you can compare the effects of market volatilities on Shenzhen Mindray and Tsingtao Brewery 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 Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and Tsingtao Brewery.
Diversification Opportunities for Shenzhen Mindray and Tsingtao Brewery
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and Tsingtao is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and Tsingtao Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery 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 Tsingtao Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tsingtao Brewery has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and Tsingtao Brewery
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to under-perform the Tsingtao Brewery. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Mindray Bio Medical is 1.18 times less risky than Tsingtao Brewery. The stock trades about -0.28 of its potential returns per unit of risk. The Tsingtao Brewery Co is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 7,670 in Tsingtao Brewery Co on October 20, 2024 and sell it today you would lose (171.00) from holding Tsingtao Brewery Co or give up 2.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Shenzhen Mindray Bio Medical vs. Tsingtao Brewery Co
Performance |
| Timeline |
| Shenzhen Mindray Bio |
| Tsingtao Brewery |
Shenzhen Mindray and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and Tsingtao Brewery
The main advantage of trading using opposite Shenzhen Mindray and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, Tsingtao Brewery 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 Tsingtao Brewery will offset losses from the drop in Tsingtao Brewery's long position.| Shenzhen Mindray vs. Jinyu Bio Technology Co | Shenzhen Mindray vs. AVCON Information Tech | Shenzhen Mindray vs. Eyebright Medical Technology | Shenzhen Mindray vs. Vontron Technology Co |
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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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