Correlation Between Ye Chiu and Shenzhen Mindray
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By analyzing existing cross correlation between Ye Chiu Metal and Shenzhen Mindray Bio Medical, you can compare the effects of market volatilities on Ye Chiu 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 Ye Chiu with a short position of Shenzhen Mindray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Shenzhen Mindray.
Diversification Opportunities for Ye Chiu and Shenzhen Mindray
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 601388 and Shenzhen is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal 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 Ye Chiu 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 Ye Chiu Metal 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 Ye Chiu i.e., Ye Chiu and Shenzhen Mindray go up and down completely randomly.
Pair Corralation between Ye Chiu and Shenzhen Mindray
Assuming the 90 days trading horizon Ye Chiu Metal is expected to generate 1.38 times more return on investment than Shenzhen Mindray. However, Ye Chiu is 1.38 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 275.00 in Ye Chiu Metal on September 4, 2024 and sell it today you would earn a total of 2.00 from holding Ye Chiu Metal or generate 0.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. Shenzhen Mindray Bio Medical
Performance |
| Timeline |
| Ye Chiu Metal |
| Shenzhen Mindray Bio |
Ye Chiu and Shenzhen Mindray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Shenzhen Mindray
The main advantage of trading using opposite Ye Chiu and Shenzhen Mindray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu 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.| Ye Chiu vs. Zijin Mining Group | Ye Chiu vs. Wanhua Chemical Group | Ye Chiu vs. Baoshan Iron Steel | Ye Chiu vs. Rongsheng Petrochemical Co |
| Shenzhen Mindray vs. Hangzhou Gaoxin Rubber | Shenzhen Mindray vs. Guangzhou Tinci Materials | Shenzhen Mindray vs. Huatian Hotel Group | Shenzhen Mindray vs. Xinke Material |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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