Correlation Between Shenzhen Mindray and Chengdu B
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and Chengdu B ray Media, you can compare the effects of market volatilities on Shenzhen Mindray and Chengdu B 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 Chengdu B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and Chengdu B.
Diversification Opportunities for Shenzhen Mindray and Chengdu B
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Chengdu is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and Chengdu B ray Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu B ray 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 Chengdu B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu B ray has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and Chengdu B go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and Chengdu B
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to under-perform the Chengdu B. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Mindray Bio Medical is 1.56 times less risky than Chengdu B. The stock trades about -0.23 of its potential returns per unit of risk. The Chengdu B ray Media is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 481.00 in Chengdu B ray Media on September 13, 2024 and sell it today you would earn a total of 48.00 from holding Chengdu B ray Media or generate 9.98% 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. Chengdu B ray Media
Performance |
| Timeline |
| Shenzhen Mindray Bio |
| Chengdu B ray |
Shenzhen Mindray and Chengdu B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and Chengdu B
The main advantage of trading using opposite Shenzhen Mindray and Chengdu B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, Chengdu B 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 Chengdu B will offset losses from the drop in Chengdu B'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 |
| Chengdu B vs. Ming Yang Smart | Chengdu B vs. 159681 | Chengdu B vs. 159005 | Chengdu B vs. Loctek Ergonomic 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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