Correlation Between Shenzhen Mindray and Bank of Beijing Co Ltd
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and Bank of Beijing, you can compare the effects of market volatilities on Shenzhen Mindray and Bank of Beijing Co Ltd 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 Bank of Beijing Co Ltd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and Bank of Beijing Co Ltd.
Diversification Opportunities for Shenzhen Mindray and Bank of Beijing Co Ltd
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Bank is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and Bank of Beijing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Beijing Co Ltd 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 Bank of Beijing Co Ltd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Beijing Co Ltd has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and Bank of Beijing Co Ltd go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and Bank of Beijing Co Ltd
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to under-perform the Bank of Beijing Co Ltd. In addition to that, Shenzhen Mindray is 1.62 times more volatile than Bank of Beijing. It trades about -0.03 of its total potential returns per unit of risk. Bank of Beijing is currently generating about 0.02 per unit of volatility. If you would invest 570.00 in Bank of Beijing on September 2, 2024 and sell it today you would earn a total of 2.00 from holding Bank of Beijing or generate 0.35% 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. Bank of Beijing
Performance |
| Timeline |
| Shenzhen Mindray Bio |
| Bank of Beijing Co Ltd |
Shenzhen Mindray and Bank of Beijing Co Ltd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and Bank of Beijing Co Ltd
The main advantage of trading using opposite Shenzhen Mindray and Bank of Beijing Co Ltd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, Bank of Beijing Co Ltd 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 Bank of Beijing Co Ltd will offset losses from the drop in Bank of Beijing Co Ltd's long position.| Shenzhen Mindray vs. Sunwave Communications Co | Shenzhen Mindray vs. Double Medical Technology | Shenzhen Mindray vs. Hengkang Medical Group | Shenzhen Mindray vs. Allwin Telecommunication Co |
| Bank of Beijing Co Ltd vs. Jiahe Foods Industry | Bank of Beijing Co Ltd vs. Guilin Seamild Foods | Bank of Beijing Co Ltd vs. Great Sun Foods Co | Bank of Beijing Co Ltd vs. Guangzhou Ruoyuchen Information |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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