Correlation Between Beijing Baolande and Shenzhen Mindray
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By analyzing existing cross correlation between Beijing Baolande Software and Shenzhen Mindray Bio Medical, you can compare the effects of market volatilities on Beijing Baolande 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 Beijing Baolande with a short position of Shenzhen Mindray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Baolande and Shenzhen Mindray.
Diversification Opportunities for Beijing Baolande and Shenzhen Mindray
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Shenzhen is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Baolande Software 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 Beijing Baolande 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 Beijing Baolande Software 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 Beijing Baolande i.e., Beijing Baolande and Shenzhen Mindray go up and down completely randomly.
Pair Corralation between Beijing Baolande and Shenzhen Mindray
Assuming the 90 days trading horizon Beijing Baolande Software is expected to generate 2.1 times more return on investment than Shenzhen Mindray. However, Beijing Baolande is 2.1 times more volatile than Shenzhen Mindray Bio Medical. It trades about -0.01 of its potential returns per unit of risk. Shenzhen Mindray Bio Medical is currently generating about -0.03 per unit of risk. If you would invest 4,558 in Beijing Baolande Software on October 16, 2024 and sell it today you would lose (2,054) from holding Beijing Baolande Software or give up 45.06% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Beijing Baolande Software vs. Shenzhen Mindray Bio Medical
Performance |
Timeline |
Beijing Baolande Software |
Shenzhen Mindray Bio |
Beijing Baolande and Shenzhen Mindray Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beijing Baolande and Shenzhen Mindray
The main advantage of trading using opposite Beijing Baolande and Shenzhen Mindray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Baolande 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.Beijing Baolande vs. Sichuan Fulin Transportation | Beijing Baolande vs. Xiamen Bank Co | Beijing Baolande vs. Qilu Bank Co | Beijing Baolande vs. Anhui Transport Consulting |
Shenzhen Mindray vs. Beijing Baolande Software | Shenzhen Mindray vs. Inspur Software Co | Shenzhen Mindray vs. Ningbo MedicalSystem Biotechnology | Shenzhen Mindray vs. Shanghai Newtouch Software |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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