Correlation Between Gome Telecom and Shenzhen Mindray
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By analyzing existing cross correlation between Gome Telecom Equipment and Shenzhen Mindray Bio Medical, you can compare the effects of market volatilities on Gome Telecom 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 Gome Telecom with a short position of Shenzhen Mindray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Shenzhen Mindray.
Diversification Opportunities for Gome Telecom and Shenzhen Mindray
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gome and Shenzhen is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment 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 Gome Telecom 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 Gome Telecom Equipment 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 Gome Telecom i.e., Gome Telecom and Shenzhen Mindray go up and down completely randomly.
Pair Corralation between Gome Telecom and Shenzhen Mindray
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to generate 1.77 times more return on investment than Shenzhen Mindray. However, Gome Telecom is 1.77 times more volatile than Shenzhen Mindray Bio Medical. It trades about -0.07 of its potential returns per unit of risk. Shenzhen Mindray Bio Medical is currently generating about -0.23 per unit of risk. If you would invest 194.00 in Gome Telecom Equipment on September 13, 2024 and sell it today you would lose (11.00) from holding Gome Telecom Equipment or give up 5.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gome Telecom Equipment vs. Shenzhen Mindray Bio Medical
Performance |
| Timeline |
| Gome Telecom Equipment |
| Shenzhen Mindray Bio |
Gome Telecom and Shenzhen Mindray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Shenzhen Mindray
The main advantage of trading using opposite Gome Telecom and Shenzhen Mindray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom 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.| Gome Telecom vs. Industrial and Commercial | Gome Telecom vs. Agricultural Bank of | Gome Telecom vs. China Construction Bank | Gome Telecom vs. Bank of China |
| Shenzhen Mindray vs. Industrial and Commercial | Shenzhen Mindray vs. Kweichow Moutai Co | Shenzhen Mindray vs. Agricultural Bank of | Shenzhen Mindray vs. China Mobile Limited |
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 Stocks Directory module to find actively traded stocks across global markets.
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