Correlation Between Ming Yang and Shenzhen Mindray
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By analyzing existing cross correlation between Ming Yang Smart and Shenzhen Mindray Bio Medical, you can compare the effects of market volatilities on Ming Yang 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 Ming Yang with a short position of Shenzhen Mindray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Shenzhen Mindray.
Diversification Opportunities for Ming Yang and Shenzhen Mindray
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ming and Shenzhen is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart 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 Ming Yang 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 Ming Yang Smart 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 Ming Yang i.e., Ming Yang and Shenzhen Mindray go up and down completely randomly.
Pair Corralation between Ming Yang and Shenzhen Mindray
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the Shenzhen Mindray. In addition to that, Ming Yang is 1.24 times more volatile than Shenzhen Mindray Bio Medical. It trades about -0.05 of its total potential returns per unit of risk. Shenzhen Mindray Bio Medical is currently generating about -0.01 per unit of volatility. If you would invest 29,402 in Shenzhen Mindray Bio Medical on September 24, 2024 and sell it today you would lose (4,376) from holding Shenzhen Mindray Bio Medical or give up 14.88% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ming Yang Smart vs. Shenzhen Mindray Bio Medical
Performance |
Timeline |
Ming Yang Smart |
Shenzhen Mindray Bio |
Ming Yang and Shenzhen Mindray Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ming Yang and Shenzhen Mindray
The main advantage of trading using opposite Ming Yang and Shenzhen Mindray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang 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.Ming Yang vs. Jiangsu Xinri E Vehicle | Ming Yang vs. Beijing Mainstreets Investment | Ming Yang vs. Postal Savings Bank | Ming Yang vs. Ningbo Fangzheng Automobile |
Shenzhen Mindray vs. New China Life | Shenzhen Mindray vs. Ming Yang Smart | Shenzhen Mindray vs. 159681 | Shenzhen Mindray vs. 159005 |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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