Correlation Between Shenzhen Mindray and Shanghai Xinhua
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and Shanghai Xinhua Media, you can compare the effects of market volatilities on Shenzhen Mindray and Shanghai Xinhua 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 Shanghai Xinhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and Shanghai Xinhua.
Diversification Opportunities for Shenzhen Mindray and Shanghai Xinhua
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Shanghai is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and Shanghai Xinhua Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Xinhua Media 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 Shanghai Xinhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Xinhua Media has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and Shanghai Xinhua go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and Shanghai Xinhua
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to under-perform the Shanghai Xinhua. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Mindray Bio Medical is 1.82 times less risky than Shanghai Xinhua. The stock trades about 0.0 of its potential returns per unit of risk. The Shanghai Xinhua Media is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 374.00 in Shanghai Xinhua Media on September 12, 2024 and sell it today you would earn a total of 451.00 from holding Shanghai Xinhua Media or generate 120.59% 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. Shanghai Xinhua Media
Performance |
| Timeline |
| Shenzhen Mindray Bio |
| Shanghai Xinhua Media |
Shenzhen Mindray and Shanghai Xinhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and Shanghai Xinhua
The main advantage of trading using opposite Shenzhen Mindray and Shanghai Xinhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, Shanghai Xinhua 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 Shanghai Xinhua will offset losses from the drop in Shanghai Xinhua's long position.| Shenzhen Mindray vs. Cultural Investment Holdings | Shenzhen Mindray vs. Gome Telecom Equipment | Shenzhen Mindray vs. Holitech Technology Co | Shenzhen Mindray vs. Zotye Automobile Co |
| Shanghai Xinhua vs. Kweichow Moutai Co | Shanghai Xinhua vs. Shenzhen Mindray Bio Medical | Shanghai Xinhua vs. G bits Network Technology | Shanghai Xinhua vs. Beijing Roborock 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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