Correlation Between Shenzhen Mindray and Shanghai Ziyan
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and Shanghai Ziyan Foods, you can compare the effects of market volatilities on Shenzhen Mindray and Shanghai Ziyan 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 Shanghai Ziyan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and Shanghai Ziyan.
Diversification Opportunities for Shenzhen Mindray and Shanghai Ziyan
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Shanghai is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and Shanghai Ziyan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Ziyan Foods 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 Shanghai Ziyan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Ziyan Foods has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and Shanghai Ziyan go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and Shanghai Ziyan
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to generate 0.95 times more return on investment than Shanghai Ziyan. However, Shenzhen Mindray Bio Medical is 1.05 times less risky than Shanghai Ziyan. It trades about 0.0 of its potential returns per unit of risk. Shanghai Ziyan Foods is currently generating about 0.0 per unit of risk. If you would invest 27,539 in Shenzhen Mindray Bio Medical on September 14, 2024 and sell it today you would lose (1,622) from holding Shenzhen Mindray Bio Medical or give up 5.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Mindray Bio Medical vs. Shanghai Ziyan Foods
Performance |
| Timeline |
| Shenzhen Mindray Bio |
| Shanghai Ziyan Foods |
Shenzhen Mindray and Shanghai Ziyan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and Shanghai Ziyan
The main advantage of trading using opposite Shenzhen Mindray and Shanghai Ziyan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, Shanghai Ziyan 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 Shanghai Ziyan will offset losses from the drop in Shanghai Ziyan's long position.| Shenzhen Mindray vs. Jiangsu Financial Leasing | Shenzhen Mindray vs. Ningbo Fangzheng Automobile | Shenzhen Mindray vs. Xiangyang Automobile Bearing | Shenzhen Mindray vs. Dongfeng Automobile Co |
| Shanghai Ziyan vs. Kweichow Moutai Co | Shanghai Ziyan vs. Shenzhen Mindray Bio Medical | Shanghai Ziyan vs. Jiangsu Pacific Quartz | Shanghai Ziyan vs. G bits Network 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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