Correlation Between Shenzhen Mindray and G-bits Network
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and G bits Network Technology, you can compare the effects of market volatilities on Shenzhen Mindray and G-bits Network 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 G-bits Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and G-bits Network.
Diversification Opportunities for Shenzhen Mindray and G-bits Network
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and G-bits is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and G bits Network Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G bits Network 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 G-bits Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G bits Network has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and G-bits Network go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and G-bits Network
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to under-perform the G-bits Network. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Mindray Bio Medical is 1.32 times less risky than G-bits Network. The stock trades about -0.07 of its potential returns per unit of risk. The G bits Network Technology is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 20,790 in G bits Network Technology on August 31, 2024 and sell it today you would lose (141.00) from holding G bits Network Technology or give up 0.68% 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. G bits Network Technology
Performance |
| Timeline |
| Shenzhen Mindray Bio |
| G bits Network |
Shenzhen Mindray and G-bits Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and G-bits Network
The main advantage of trading using opposite Shenzhen Mindray and G-bits Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, G-bits Network 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 G-bits Network will offset losses from the drop in G-bits Network's long position.| Shenzhen Mindray vs. Shenzhen Kexin Communication | Shenzhen Mindray vs. Shanghai Metersbonwe FashionAccessories | Shenzhen Mindray vs. Cicc Fund Management | Shenzhen Mindray vs. Sanbo Hospital Management |
| G-bits Network vs. Heren Health Co | G-bits Network vs. Tongyu Communication | G-bits Network vs. Allwin Telecommunication Co | G-bits Network vs. Wuhan Yangtze Communication |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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