Correlation Between Shenzhen Mindray and Nantong Haixing
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and Nantong Haixing Electronics, you can compare the effects of market volatilities on Shenzhen Mindray and Nantong Haixing 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 Nantong Haixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and Nantong Haixing.
Diversification Opportunities for Shenzhen Mindray and Nantong Haixing
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Nantong is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and Nantong Haixing Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nantong Haixing Elec 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 Nantong Haixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nantong Haixing Elec has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and Nantong Haixing go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and Nantong Haixing
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to under-perform the Nantong Haixing. In addition to that, Shenzhen Mindray is 1.07 times more volatile than Nantong Haixing Electronics. It trades about -0.08 of its total potential returns per unit of risk. Nantong Haixing Electronics is currently generating about -0.06 per unit of volatility. If you would invest 1,360 in Nantong Haixing Electronics on August 25, 2024 and sell it today you would lose (36.00) from holding Nantong Haixing Electronics or give up 2.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shenzhen Mindray Bio Medical vs. Nantong Haixing Electronics
Performance |
| Timeline |
| Shenzhen Mindray Bio |
| Nantong Haixing Elec |
Shenzhen Mindray and Nantong Haixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and Nantong Haixing
The main advantage of trading using opposite Shenzhen Mindray and Nantong Haixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, Nantong Haixing 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 Nantong Haixing will offset losses from the drop in Nantong Haixing's long position.| Shenzhen Mindray vs. Luolai Home Textile | Shenzhen Mindray vs. Ziel Home Furnishing | Shenzhen Mindray vs. Songz Automobile Air | Shenzhen Mindray vs. Guangdong Shenglu Telecommunication |
| Nantong Haixing vs. Kweichow Moutai Co | Nantong Haixing vs. Shenzhen Mindray Bio Medical | Nantong Haixing vs. Jiangsu Pacific Quartz | Nantong Haixing 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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