Correlation Between Procter Gamble and Shenzhen Mindray
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By analyzing existing cross correlation between Procter Gamble and Shenzhen Mindray Bio Medical, you can compare the effects of market volatilities on Procter Gamble 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 Procter Gamble with a short position of Shenzhen Mindray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and Shenzhen Mindray.
Diversification Opportunities for Procter Gamble and Shenzhen Mindray
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Procter and Shenzhen is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble 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 Procter Gamble 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 Procter Gamble 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 Procter Gamble i.e., Procter Gamble and Shenzhen Mindray go up and down completely randomly.
Pair Corralation between Procter Gamble and Shenzhen Mindray
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 0.64 times more return on investment than Shenzhen Mindray. However, Procter Gamble is 1.57 times less risky than Shenzhen Mindray. It trades about 0.17 of its potential returns per unit of risk. Shenzhen Mindray Bio Medical is currently generating about -0.14 per unit of risk. If you would invest 16,930 in Procter Gamble on August 27, 2024 and sell it today you would earn a total of 698.00 from holding Procter Gamble or generate 4.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Procter Gamble vs. Shenzhen Mindray Bio Medical
Performance |
| Timeline |
| Procter Gamble |
| Shenzhen Mindray Bio |
Procter Gamble and Shenzhen Mindray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and Shenzhen Mindray
The main advantage of trading using opposite Procter Gamble and Shenzhen Mindray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble 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.| Procter Gamble vs. Unilever PLC ADR | Procter Gamble vs. Estee Lauder Companies | Procter Gamble vs. ELF Beauty | Procter Gamble vs. Coty Inc |
| Shenzhen Mindray vs. Cultural Investment Holdings | Shenzhen Mindray vs. Jointo Energy Investment | Shenzhen Mindray vs. Chengdu B ray Media | Shenzhen Mindray vs. Luyin Investment Group |
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.
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