Correlation Between Shenzhen Mindray and Heilongjiang Publishing
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and Heilongjiang Publishing Media, you can compare the effects of market volatilities on Shenzhen Mindray and Heilongjiang Publishing 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 Heilongjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and Heilongjiang Publishing.
Diversification Opportunities for Shenzhen Mindray and Heilongjiang Publishing
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Heilongjiang is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and Heilongjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Publishing 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 Heilongjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Publishing has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and Heilongjiang Publishing go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and Heilongjiang Publishing
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to under-perform the Heilongjiang Publishing. 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 Heilongjiang Publishing. The stock trades about 0.0 of its potential returns per unit of risk. The Heilongjiang Publishing Media is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 959.00 in Heilongjiang Publishing Media on September 12, 2024 and sell it today you would earn a total of 739.00 from holding Heilongjiang Publishing Media or generate 77.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Mindray Bio Medical vs. Heilongjiang Publishing Media
Performance |
| Timeline |
| Shenzhen Mindray Bio |
| Heilongjiang Publishing |
Shenzhen Mindray and Heilongjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and Heilongjiang Publishing
The main advantage of trading using opposite Shenzhen Mindray and Heilongjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, Heilongjiang Publishing 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 Heilongjiang Publishing will offset losses from the drop in Heilongjiang Publishing's long position.| Shenzhen Mindray vs. Cultural Investment Holdings | Shenzhen Mindray vs. Gome Telecom Equipment | Shenzhen Mindray vs. Holitech Technology Co | Shenzhen Mindray vs. Zotye Automobile Co |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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