Correlation Between Shenzhen Mindray and Hainan Haiqi
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and Hainan Haiqi Transportation, you can compare the effects of market volatilities on Shenzhen Mindray and Hainan Haiqi 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 Hainan Haiqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and Hainan Haiqi.
Diversification Opportunities for Shenzhen Mindray and Hainan Haiqi
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Hainan is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and Hainan Haiqi Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Haiqi Transpo 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 Hainan Haiqi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Haiqi Transpo has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and Hainan Haiqi go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and Hainan Haiqi
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to under-perform the Hainan Haiqi. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Mindray Bio Medical is 1.82 times less risky than Hainan Haiqi. The stock trades about -0.11 of its potential returns per unit of risk. The Hainan Haiqi Transportation is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,927 in Hainan Haiqi Transportation on September 25, 2024 and sell it today you would earn a total of 24.00 from holding Hainan Haiqi Transportation or generate 1.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Mindray Bio Medical vs. Hainan Haiqi Transportation
Performance |
Timeline |
Shenzhen Mindray Bio |
Hainan Haiqi Transpo |
Shenzhen Mindray and Hainan Haiqi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Mindray and Hainan Haiqi
The main advantage of trading using opposite Shenzhen Mindray and Hainan Haiqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, Hainan Haiqi 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 Hainan Haiqi will offset losses from the drop in Hainan Haiqi's long position.Shenzhen Mindray vs. New China Life | Shenzhen Mindray vs. Ming Yang Smart | Shenzhen Mindray vs. 159681 | Shenzhen Mindray vs. 159005 |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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