Correlation Between Shenzhen Mindray and Jiangsu Phoenix
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and Jiangsu Phoenix Publishing, you can compare the effects of market volatilities on Shenzhen Mindray and Jiangsu Phoenix 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 Jiangsu Phoenix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and Jiangsu Phoenix.
Diversification Opportunities for Shenzhen Mindray and Jiangsu Phoenix
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and Jiangsu is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and Jiangsu Phoenix Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Phoenix Publ 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 Jiangsu Phoenix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Phoenix Publ has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and Jiangsu Phoenix go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and Jiangsu Phoenix
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to under-perform the Jiangsu Phoenix. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Mindray Bio Medical is 1.08 times less risky than Jiangsu Phoenix. The stock trades about -0.17 of its potential returns per unit of risk. The Jiangsu Phoenix Publishing is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,063 in Jiangsu Phoenix Publishing on September 12, 2024 and sell it today you would earn a total of 49.00 from holding Jiangsu Phoenix Publishing or generate 4.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Mindray Bio Medical vs. Jiangsu Phoenix Publishing
Performance |
| Timeline |
| Shenzhen Mindray Bio |
| Jiangsu Phoenix Publ |
Shenzhen Mindray and Jiangsu Phoenix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and Jiangsu Phoenix
The main advantage of trading using opposite Shenzhen Mindray and Jiangsu Phoenix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, Jiangsu Phoenix 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 Jiangsu Phoenix will offset losses from the drop in Jiangsu Phoenix'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 |
| Jiangsu Phoenix vs. Kweichow Moutai Co | Jiangsu Phoenix vs. Shenzhen Mindray Bio Medical | Jiangsu Phoenix vs. G bits Network Technology | Jiangsu Phoenix 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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