Correlation Between Shenzhen Mindray and Industrial Bank
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and Industrial Bank Co, you can compare the effects of market volatilities on Shenzhen Mindray and Industrial Bank 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 Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and Industrial Bank.
Diversification Opportunities for Shenzhen Mindray and Industrial Bank
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Industrial is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and Industrial Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Bank 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 Industrial Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Bank has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and Industrial Bank go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and Industrial Bank
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to under-perform the Industrial Bank. In addition to that, Shenzhen Mindray is 1.57 times more volatile than Industrial Bank Co. It trades about -0.03 of its total potential returns per unit of risk. Industrial Bank Co is currently generating about 0.04 per unit of volatility. If you would invest 1,682 in Industrial Bank Co on September 3, 2024 and sell it today you would earn a total of 123.00 from holding Industrial Bank Co or generate 7.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Mindray Bio Medical vs. Industrial Bank Co
Performance |
| Timeline |
| Shenzhen Mindray Bio |
| Industrial Bank |
Shenzhen Mindray and Industrial Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and Industrial Bank
The main advantage of trading using opposite Shenzhen Mindray and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, Industrial Bank 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 Industrial Bank will offset losses from the drop in Industrial Bank's long position.| Shenzhen Mindray vs. Chongqing Shunbo Aluminum | Shenzhen Mindray vs. Quectel Wireless Solutions | Shenzhen Mindray vs. Rising Nonferrous Metals | Shenzhen Mindray vs. Ye Chiu Metal |
| Industrial Bank vs. Chongqing Road Bridge | Industrial Bank vs. Wuhan Xianglong Power | Industrial Bank vs. Empyrean Technology Co | Industrial Bank vs. Yuanjie Semiconductor 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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