Correlation Between Heilongjiang Transport and Shenzhen Mindray
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By analyzing existing cross correlation between Heilongjiang Transport Development and Shenzhen Mindray Bio Medical, you can compare the effects of market volatilities on Heilongjiang Transport 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 Heilongjiang Transport with a short position of Shenzhen Mindray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Transport and Shenzhen Mindray.
Diversification Opportunities for Heilongjiang Transport and Shenzhen Mindray
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Heilongjiang and Shenzhen is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Transport Develop 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 Heilongjiang Transport 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 Heilongjiang Transport Development 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 Heilongjiang Transport i.e., Heilongjiang Transport and Shenzhen Mindray go up and down completely randomly.
Pair Corralation between Heilongjiang Transport and Shenzhen Mindray
Assuming the 90 days trading horizon Heilongjiang Transport Development is expected to generate 1.59 times more return on investment than Shenzhen Mindray. However, Heilongjiang Transport is 1.59 times more volatile than Shenzhen Mindray Bio Medical. It trades about 0.03 of its potential returns per unit of risk. Shenzhen Mindray Bio Medical is currently generating about 0.0 per unit of risk. If you would invest 305.00 in Heilongjiang Transport Development on August 29, 2024 and sell it today you would earn a total of 77.00 from holding Heilongjiang Transport Development or generate 25.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heilongjiang Transport Develop vs. Shenzhen Mindray Bio Medical
Performance |
| Timeline |
| Heilongjiang Transport |
| Shenzhen Mindray Bio |
Heilongjiang Transport and Shenzhen Mindray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Transport and Shenzhen Mindray
The main advantage of trading using opposite Heilongjiang Transport and Shenzhen Mindray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Transport 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.| Heilongjiang Transport vs. PetroChina Co Ltd | Heilongjiang Transport vs. China State Construction | Heilongjiang Transport vs. China Mobile Limited | Heilongjiang Transport vs. Industrial and Commercial |
| Shenzhen Mindray vs. Xinjiang Baodi Mining | Shenzhen Mindray vs. Huaibei Mining Holdings | Shenzhen Mindray vs. Jilin Chemical Fibre | Shenzhen Mindray vs. Guizhou Chanhen Chemical |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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