Correlation Between Shenzhen Mindray and Guangdong Liantai
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and Guangdong Liantai Environmental, you can compare the effects of market volatilities on Shenzhen Mindray and Guangdong Liantai 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 Guangdong Liantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and Guangdong Liantai.
Diversification Opportunities for Shenzhen Mindray and Guangdong Liantai
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenzhen and Guangdong is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and Guangdong Liantai Environmenta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Liantai 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 Guangdong Liantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Liantai has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and Guangdong Liantai go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and Guangdong Liantai
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to under-perform the Guangdong Liantai. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Mindray Bio Medical is 1.1 times less risky than Guangdong Liantai. The stock trades about -0.27 of its potential returns per unit of risk. The Guangdong Liantai Environmental is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 392.00 in Guangdong Liantai Environmental on November 3, 2024 and sell it today you would earn a total of 4.00 from holding Guangdong Liantai Environmental or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Mindray Bio Medical vs. Guangdong Liantai Environmenta
Performance |
| Timeline |
| Shenzhen Mindray Bio |
| Guangdong Liantai |
Shenzhen Mindray and Guangdong Liantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and Guangdong Liantai
The main advantage of trading using opposite Shenzhen Mindray and Guangdong Liantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, Guangdong Liantai 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 Guangdong Liantai will offset losses from the drop in Guangdong Liantai's long position.| Shenzhen Mindray vs. Integrated Electronic Systems | Shenzhen Mindray vs. Nantong Haixing Electronics | Shenzhen Mindray vs. Guangzhou Ruoyuchen Information | Shenzhen Mindray vs. Weihai Honglin Electronic |
| Guangdong Liantai vs. Ningbo Ligong Online | Guangdong Liantai vs. StarPower Semiconductor | Guangdong Liantai vs. Shanghai V Test Semiconductor | Guangdong Liantai vs. Senci Electric Machinery |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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