Correlation Between Zhongjing Food and Shenzhen Mindray
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By analyzing existing cross correlation between Zhongjing Food Co and Shenzhen Mindray Bio Medical, you can compare the effects of market volatilities on Zhongjing Food and Shenzhen Mindray 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 Zhongjing Food with a short position of Shenzhen Mindray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongjing Food and Shenzhen Mindray.
Diversification Opportunities for Zhongjing Food and Shenzhen Mindray
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhongjing and Shenzhen is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Zhongjing Food Co and Shenzhen Mindray Bio Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Mindray Bio and Zhongjing Food 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 Zhongjing Food Co are associated (or correlated) with Shenzhen Mindray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Mindray Bio has no effect on the direction of Zhongjing Food i.e., Zhongjing Food and Shenzhen Mindray go up and down completely randomly.
Pair Corralation between Zhongjing Food and Shenzhen Mindray
Assuming the 90 days trading horizon Zhongjing Food Co is expected to generate 1.29 times more return on investment than Shenzhen Mindray. However, Zhongjing Food is 1.29 times more volatile than Shenzhen Mindray Bio Medical. It trades about -0.22 of its potential returns per unit of risk. Shenzhen Mindray Bio Medical is currently generating about -0.29 per unit of risk. If you would invest 3,267 in Zhongjing Food Co on October 25, 2024 and sell it today you would lose (265.00) from holding Zhongjing Food Co or give up 8.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Zhongjing Food Co vs. Shenzhen Mindray Bio Medical
Performance |
| Timeline |
| Zhongjing Food |
| Shenzhen Mindray Bio |
Zhongjing Food and Shenzhen Mindray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongjing Food and Shenzhen Mindray
The main advantage of trading using opposite Zhongjing Food and Shenzhen Mindray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongjing Food position performs unexpectedly, Shenzhen Mindray 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 Shenzhen Mindray will offset losses from the drop in Shenzhen Mindray's long position.| Zhongjing Food vs. Agricultural Bank of | Zhongjing Food vs. Postal Savings Bank | Zhongjing Food vs. Bank of Communications | Zhongjing Food vs. China Merchants Bank |
| Shenzhen Mindray vs. Ligao Foods CoLtd | Shenzhen Mindray vs. New Hope Dairy | Shenzhen Mindray vs. Zhongjing Food Co | Shenzhen Mindray vs. HaiXin Foods 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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