Correlation Between Shenzhen Mindray and HengFeng Information
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and HengFeng Information Technology, you can compare the effects of market volatilities on Shenzhen Mindray and HengFeng Information 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 Shenzhen Mindray with a short position of HengFeng Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and HengFeng Information.
Diversification Opportunities for Shenzhen Mindray and HengFeng Information
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and HengFeng is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and HengFeng Information Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HengFeng Information and Shenzhen Mindray 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 Shenzhen Mindray Bio Medical are associated (or correlated) with HengFeng Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HengFeng Information has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and HengFeng Information go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and HengFeng Information
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to under-perform the HengFeng Information. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Mindray Bio Medical is 1.89 times less risky than HengFeng Information. The stock trades about -0.07 of its potential returns per unit of risk. The HengFeng Information Technology is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,289 in HengFeng Information Technology on September 25, 2024 and sell it today you would lose (28.00) from holding HengFeng Information Technology or give up 2.17% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Mindray Bio Medical vs. HengFeng Information Technolog
Performance |
Timeline |
Shenzhen Mindray Bio |
HengFeng Information |
Shenzhen Mindray and HengFeng Information Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Mindray and HengFeng Information
The main advantage of trading using opposite Shenzhen Mindray and HengFeng Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, HengFeng Information 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 HengFeng Information will offset losses from the drop in HengFeng Information's long position.Shenzhen Mindray vs. New China Life | Shenzhen Mindray vs. Ming Yang Smart | Shenzhen Mindray vs. 159681 | Shenzhen Mindray vs. 159005 |
HengFeng Information vs. Kweichow Moutai Co | HengFeng Information vs. Shenzhen Mindray Bio Medical | HengFeng Information vs. Jiangsu Pacific Quartz | HengFeng Information vs. G bits Network Technology |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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