Correlation Between Everdisplay Optronics and Shenzhen Mindray
Specify exactly 2 symbols:
By analyzing existing cross correlation between Everdisplay Optronics Shanghai and Shenzhen Mindray Bio Medical, you can compare the effects of market volatilities on Everdisplay Optronics 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 Everdisplay Optronics with a short position of Shenzhen Mindray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everdisplay Optronics and Shenzhen Mindray.
Diversification Opportunities for Everdisplay Optronics and Shenzhen Mindray
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Everdisplay and Shenzhen is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Everdisplay Optronics Shanghai 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 Everdisplay Optronics 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 Everdisplay Optronics Shanghai 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 Everdisplay Optronics i.e., Everdisplay Optronics and Shenzhen Mindray go up and down completely randomly.
Pair Corralation between Everdisplay Optronics and Shenzhen Mindray
Assuming the 90 days trading horizon Everdisplay Optronics Shanghai is expected to generate 1.31 times more return on investment than Shenzhen Mindray. However, Everdisplay Optronics is 1.31 times more volatile than Shenzhen Mindray Bio Medical. It trades about -0.04 of its potential returns per unit of risk. Shenzhen Mindray Bio Medical is currently generating about -0.1 per unit of risk. If you would invest 242.00 in Everdisplay Optronics Shanghai on September 27, 2024 and sell it today you would lose (6.00) from holding Everdisplay Optronics Shanghai or give up 2.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Everdisplay Optronics Shanghai vs. Shenzhen Mindray Bio Medical
Performance |
| Timeline |
| Everdisplay Optronics |
| Shenzhen Mindray Bio |
Everdisplay Optronics and Shenzhen Mindray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Everdisplay Optronics and Shenzhen Mindray
The main advantage of trading using opposite Everdisplay Optronics and Shenzhen Mindray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everdisplay Optronics 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.| Everdisplay Optronics vs. Industrial and Commercial | Everdisplay Optronics vs. China Construction Bank | Everdisplay Optronics vs. Agricultural Bank of | Everdisplay Optronics vs. Bank of China |
| Shenzhen Mindray vs. Songz Automobile Air | Shenzhen Mindray vs. Fiberhome Telecommunication Technologies | Shenzhen Mindray vs. Everdisplay Optronics Shanghai | Shenzhen Mindray vs. Jiangsu Jinling Sports |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |