Correlation Between Luzhou Lao and Shenzhen Mindray
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By analyzing existing cross correlation between Luzhou Lao Jiao and Shenzhen Mindray Bio Medical, you can compare the effects of market volatilities on Luzhou Lao 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 Luzhou Lao with a short position of Shenzhen Mindray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luzhou Lao and Shenzhen Mindray.
Diversification Opportunities for Luzhou Lao and Shenzhen Mindray
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Luzhou and Shenzhen is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Luzhou Lao Jiao 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 Luzhou Lao 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 Luzhou Lao Jiao 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 Luzhou Lao i.e., Luzhou Lao and Shenzhen Mindray go up and down completely randomly.
Pair Corralation between Luzhou Lao and Shenzhen Mindray
Assuming the 90 days trading horizon Luzhou Lao Jiao is expected to generate 1.08 times more return on investment than Shenzhen Mindray. However, Luzhou Lao is 1.08 times more volatile than Shenzhen Mindray Bio Medical. It trades about 0.17 of its potential returns per unit of risk. Shenzhen Mindray Bio Medical is currently generating about 0.08 per unit of risk. If you would invest 10,260 in Luzhou Lao Jiao on September 12, 2024 and sell it today you would earn a total of 3,909 from holding Luzhou Lao Jiao or generate 38.1% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Luzhou Lao Jiao vs. Shenzhen Mindray Bio Medical
Performance |
Timeline |
Luzhou Lao Jiao |
Shenzhen Mindray Bio |
Luzhou Lao and Shenzhen Mindray Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Luzhou Lao and Shenzhen Mindray
The main advantage of trading using opposite Luzhou Lao and Shenzhen Mindray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luzhou Lao 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.Luzhou Lao vs. Nuode Investment Co | Luzhou Lao vs. Shenzhen Centralcon Investment | Luzhou Lao vs. Anhui Gujing Distillery | Luzhou Lao vs. Gansu Huangtai Wine marketing |
Shenzhen Mindray vs. Cultural Investment Holdings | Shenzhen Mindray vs. Gome Telecom Equipment | Shenzhen Mindray vs. Holitech Technology Co | Shenzhen Mindray vs. Zotye Automobile Co |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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