Correlation Between Shenzhen Mindray and New China
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and New China Life, you can compare the effects of market volatilities on Shenzhen Mindray and New China 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 New China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and New China.
Diversification Opportunities for Shenzhen Mindray and New China
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and New is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and New China Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New China Life 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 New China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New China Life has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and New China go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and New China
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to under-perform the New China. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Mindray Bio Medical is 1.6 times less risky than New China. The stock trades about -0.39 of its potential returns per unit of risk. The New China Life is currently generating about -0.25 of returns per unit of risk over similar time horizon. If you would invest 4,953 in New China Life on October 15, 2024 and sell it today you would lose (452.00) from holding New China Life or give up 9.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Mindray Bio Medical vs. New China Life
Performance |
| Timeline |
| Shenzhen Mindray Bio |
| New China Life |
Shenzhen Mindray and New China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and New China
The main advantage of trading using opposite Shenzhen Mindray and New China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, New China 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 New China will offset losses from the drop in New China's long position.| Shenzhen Mindray vs. Qumei Furniture Group | Shenzhen Mindray vs. UE Furniture Co | Shenzhen Mindray vs. Shanghai Yaoji Playing | Shenzhen Mindray vs. Shenzhen SDG Information |
| New China vs. Jahen Household Products | New China vs. Xiangyu Medical Co | New China vs. Zhejiang Qianjiang Motorcycle | New China vs. Zhonghong Pulin Medical |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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