Correlation Between Shenzhen Mindray and Allgens Medical
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and Allgens Medical Technology, you can compare the effects of market volatilities on Shenzhen Mindray and Allgens Medical 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 Allgens Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and Allgens Medical.
Diversification Opportunities for Shenzhen Mindray and Allgens Medical
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Allgens is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and Allgens Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allgens Medical Tech 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 Allgens Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allgens Medical Tech has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and Allgens Medical go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and Allgens Medical
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to generate 0.66 times more return on investment than Allgens Medical. However, Shenzhen Mindray Bio Medical is 1.51 times less risky than Allgens Medical. It trades about -0.01 of its potential returns per unit of risk. Allgens Medical Technology is currently generating about -0.01 per unit of risk. If you would invest 30,388 in Shenzhen Mindray Bio Medical on September 3, 2024 and sell it today you would lose (4,339) from holding Shenzhen Mindray Bio Medical or give up 14.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Mindray Bio Medical vs. Allgens Medical Technology
Performance |
| Timeline |
| Shenzhen Mindray Bio |
| Allgens Medical Tech |
Shenzhen Mindray and Allgens Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Mindray and Allgens Medical
The main advantage of trading using opposite Shenzhen Mindray and Allgens Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, Allgens Medical 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 Allgens Medical will offset losses from the drop in Allgens Medical's long position.| Shenzhen Mindray vs. Chongqing Shunbo Aluminum | Shenzhen Mindray vs. Quectel Wireless Solutions | Shenzhen Mindray vs. Rising Nonferrous Metals | Shenzhen Mindray vs. Ye Chiu Metal |
| Allgens Medical vs. Chengdu Kanghua Biological | Allgens Medical vs. Beijing Wantai Biological | Allgens Medical vs. Suzhou Novoprotein Scientific | Allgens Medical vs. Aluminum Corp of |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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