Correlation Between Shenzhen Mindray and EmbedWay TechCorp
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and EmbedWay TechCorp, you can compare the effects of market volatilities on Shenzhen Mindray and EmbedWay TechCorp 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 EmbedWay TechCorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and EmbedWay TechCorp.
Diversification Opportunities for Shenzhen Mindray and EmbedWay TechCorp
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and EmbedWay is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and EmbedWay TechCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EmbedWay TechCorp 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 EmbedWay TechCorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EmbedWay TechCorp has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and EmbedWay TechCorp go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and EmbedWay TechCorp
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to under-perform the EmbedWay TechCorp. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Mindray Bio Medical is 2.12 times less risky than EmbedWay TechCorp. The stock trades about -0.03 of its potential returns per unit of risk. The EmbedWay TechCorp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,238 in EmbedWay TechCorp on October 16, 2024 and sell it today you would earn a total of 1,031 from holding EmbedWay TechCorp or generate 83.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Mindray Bio Medical vs. EmbedWay TechCorp
Performance |
| Timeline |
| Shenzhen Mindray Bio |
| EmbedWay TechCorp |
Shenzhen Mindray and EmbedWay TechCorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and EmbedWay TechCorp
The main advantage of trading using opposite Shenzhen Mindray and EmbedWay TechCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, EmbedWay TechCorp 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 EmbedWay TechCorp will offset losses from the drop in EmbedWay TechCorp's long position.| Shenzhen Mindray vs. Beijing Baolande Software | Shenzhen Mindray vs. Inspur Software Co | Shenzhen Mindray vs. Ningbo MedicalSystem Biotechnology | Shenzhen Mindray vs. Shanghai Newtouch Software |
| EmbedWay TechCorp vs. Kweichow Moutai Co | EmbedWay TechCorp vs. NAURA Technology Group | EmbedWay TechCorp vs. Zhejiang Orient Gene | EmbedWay TechCorp vs. APT 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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