Correlation Between Industrial Bank and Shenzhen Mindray
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By analyzing existing cross correlation between Industrial Bank Co and Shenzhen Mindray Bio Medical, you can compare the effects of market volatilities on Industrial Bank 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 Industrial Bank with a short position of Shenzhen Mindray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and Shenzhen Mindray.
Diversification Opportunities for Industrial Bank and Shenzhen Mindray
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Industrial and Shenzhen is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank 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 Industrial Bank 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 Industrial Bank 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 Industrial Bank i.e., Industrial Bank and Shenzhen Mindray go up and down completely randomly.
Pair Corralation between Industrial Bank and Shenzhen Mindray
Assuming the 90 days trading horizon Industrial Bank Co is expected to under-perform the Shenzhen Mindray. But the stock apears to be less risky and, when comparing its historical volatility, Industrial Bank Co is 1.4 times less risky than Shenzhen Mindray. The stock trades about -0.17 of its potential returns per unit of risk. The Shenzhen Mindray Bio Medical is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 27,151 in Shenzhen Mindray Bio Medical on August 24, 2024 and sell it today you would earn a total of 50.00 from holding Shenzhen Mindray Bio Medical or generate 0.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial Bank Co vs. Shenzhen Mindray Bio Medical
Performance |
| Timeline |
| Industrial Bank |
| Shenzhen Mindray Bio |
Industrial Bank and Shenzhen Mindray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and Shenzhen Mindray
The main advantage of trading using opposite Industrial Bank and Shenzhen Mindray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank 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.| Industrial Bank vs. New China Life | Industrial Bank vs. Ming Yang Smart | Industrial Bank vs. 159005 | Industrial Bank vs. Loctek Ergonomic Technology |
| Shenzhen Mindray vs. Anhui Huilong Agricultural | Shenzhen Mindray vs. China Railway Construction | Shenzhen Mindray vs. Tianshui Huatian Technology | Shenzhen Mindray vs. Lutian Machinery 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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