Correlation Between Zhende Medical and Shenzhen Bioeasy
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By analyzing existing cross correlation between Zhende Medical Co and Shenzhen Bioeasy Biotechnology, you can compare the effects of market volatilities on Zhende Medical and Shenzhen Bioeasy 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 Zhende Medical with a short position of Shenzhen Bioeasy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhende Medical and Shenzhen Bioeasy.
Diversification Opportunities for Zhende Medical and Shenzhen Bioeasy
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhende and Shenzhen is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Zhende Medical Co and Shenzhen Bioeasy Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Bioeasy Bio and Zhende Medical 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 Zhende Medical Co are associated (or correlated) with Shenzhen Bioeasy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Bioeasy Bio has no effect on the direction of Zhende Medical i.e., Zhende Medical and Shenzhen Bioeasy go up and down completely randomly.
Pair Corralation between Zhende Medical and Shenzhen Bioeasy
Assuming the 90 days trading horizon Zhende Medical is expected to generate 14.64 times less return on investment than Shenzhen Bioeasy. But when comparing it to its historical volatility, Zhende Medical Co is 4.49 times less risky than Shenzhen Bioeasy. It trades about 0.04 of its potential returns per unit of risk. Shenzhen Bioeasy Biotechnology is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 861.00 in Shenzhen Bioeasy Biotechnology on September 1, 2024 and sell it today you would earn a total of 127.00 from holding Shenzhen Bioeasy Biotechnology or generate 14.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhende Medical Co vs. Shenzhen Bioeasy Biotechnology
Performance |
| Timeline |
| Zhende Medical |
| Shenzhen Bioeasy Bio |
Zhende Medical and Shenzhen Bioeasy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhende Medical and Shenzhen Bioeasy
The main advantage of trading using opposite Zhende Medical and Shenzhen Bioeasy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhende Medical position performs unexpectedly, Shenzhen Bioeasy 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 Bioeasy will offset losses from the drop in Shenzhen Bioeasy's long position.| Zhende Medical vs. Nanjing Putian Telecommunications | Zhende Medical vs. Shenzhen Hifuture Electric | Zhende Medical vs. Tianjin Realty Development | Zhende Medical vs. Shenyang Huitian Thermal |
| Shenzhen Bioeasy vs. PetroChina Co Ltd | Shenzhen Bioeasy vs. China Mobile Limited | Shenzhen Bioeasy vs. CNOOC Limited | Shenzhen Bioeasy vs. Ping An Insurance |
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 Managers module to screen money managers from public funds and ETFs managed around the world.
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