Correlation Between Xinjiang Baodi and Shenzhen Mindray
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Shenzhen Mindray Bio Medical, you can compare the effects of market volatilities on Xinjiang Baodi 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 Xinjiang Baodi with a short position of Shenzhen Mindray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Shenzhen Mindray.
Diversification Opportunities for Xinjiang Baodi and Shenzhen Mindray
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Shenzhen is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining 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 Xinjiang Baodi 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 Xinjiang Baodi Mining 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 Xinjiang Baodi i.e., Xinjiang Baodi and Shenzhen Mindray go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Shenzhen Mindray
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to generate 1.5 times more return on investment than Shenzhen Mindray. However, Xinjiang Baodi is 1.5 times more volatile than Shenzhen Mindray Bio Medical. It trades about 0.02 of its potential returns per unit of risk. Shenzhen Mindray Bio Medical is currently generating about -0.01 per unit of risk. If you would invest 604.00 in Xinjiang Baodi Mining on August 27, 2024 and sell it today you would earn a total of 59.00 from holding Xinjiang Baodi Mining or generate 9.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 87.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Shenzhen Mindray Bio Medical
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Shenzhen Mindray Bio |
Xinjiang Baodi and Shenzhen Mindray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Shenzhen Mindray
The main advantage of trading using opposite Xinjiang Baodi and Shenzhen Mindray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi 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.| Xinjiang Baodi vs. Zijin Mining Group | Xinjiang Baodi vs. Wanhua Chemical Group | Xinjiang Baodi vs. Baoshan Iron Steel | Xinjiang Baodi vs. Shandong Gold Mining |
| Shenzhen Mindray vs. Cultural Investment Holdings | Shenzhen Mindray vs. Jointo Energy Investment | Shenzhen Mindray vs. Chengdu B ray Media | Shenzhen Mindray vs. Luyin Investment Group |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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