Correlation Between Tesla and Shenzhen Mindray
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By analyzing existing cross correlation between Tesla Inc and Shenzhen Mindray Bio Medical, you can compare the effects of market volatilities on Tesla 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 Tesla with a short position of Shenzhen Mindray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tesla and Shenzhen Mindray.
Diversification Opportunities for Tesla and Shenzhen Mindray
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tesla and Shenzhen is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Tesla Inc 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 Tesla 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 Tesla Inc 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 Tesla i.e., Tesla and Shenzhen Mindray go up and down completely randomly.
Pair Corralation between Tesla and Shenzhen Mindray
Given the investment horizon of 90 days Tesla Inc is expected to generate 2.73 times more return on investment than Shenzhen Mindray. However, Tesla is 2.73 times more volatile than Shenzhen Mindray Bio Medical. It trades about 0.26 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 26,251 in Tesla Inc on August 27, 2024 and sell it today you would earn a total of 7,608 from holding Tesla Inc or generate 28.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tesla Inc vs. Shenzhen Mindray Bio Medical
Performance |
| Timeline |
| Tesla Inc |
| Shenzhen Mindray Bio |
Tesla and Shenzhen Mindray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tesla and Shenzhen Mindray
The main advantage of trading using opposite Tesla and Shenzhen Mindray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tesla 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.The idea behind Tesla Inc and Shenzhen Mindray Bio Medical pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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