Correlation Between Shenzhen Mindray and JuneYao Dairy
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By analyzing existing cross correlation between Shenzhen Mindray Bio Medical and JuneYao Dairy Co, you can compare the effects of market volatilities on Shenzhen Mindray and JuneYao Dairy 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 JuneYao Dairy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Mindray and JuneYao Dairy.
Diversification Opportunities for Shenzhen Mindray and JuneYao Dairy
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and JuneYao is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Mindray Bio Medical and JuneYao Dairy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JuneYao Dairy 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 JuneYao Dairy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JuneYao Dairy has no effect on the direction of Shenzhen Mindray i.e., Shenzhen Mindray and JuneYao Dairy go up and down completely randomly.
Pair Corralation between Shenzhen Mindray and JuneYao Dairy
Assuming the 90 days trading horizon Shenzhen Mindray Bio Medical is expected to generate 0.64 times more return on investment than JuneYao Dairy. However, Shenzhen Mindray Bio Medical is 1.55 times less risky than JuneYao Dairy. It trades about 0.0 of its potential returns per unit of risk. JuneYao Dairy Co is currently generating about -0.06 per unit of risk. If you would invest 26,026 in Shenzhen Mindray Bio Medical on October 5, 2024 and sell it today you would lose (1,660) from holding Shenzhen Mindray Bio Medical or give up 6.38% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Mindray Bio Medical vs. JuneYao Dairy Co
Performance |
Timeline |
Shenzhen Mindray Bio |
JuneYao Dairy |
Shenzhen Mindray and JuneYao Dairy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Mindray and JuneYao Dairy
The main advantage of trading using opposite Shenzhen Mindray and JuneYao Dairy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Mindray position performs unexpectedly, JuneYao Dairy 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 JuneYao Dairy will offset losses from the drop in JuneYao Dairy's long position.Shenzhen Mindray vs. SUNSEA Telecommunications Co | Shenzhen Mindray vs. Hygon Information Technology | Shenzhen Mindray vs. Guangzhou Ruoyuchen Information | Shenzhen Mindray vs. Dawning Information Industry |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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