Correlation Between Chengdu Xingrong and Jinhe Biotechnology
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By analyzing existing cross correlation between Chengdu Xingrong Investment and Jinhe Biotechnology Co, you can compare the effects of market volatilities on Chengdu Xingrong and Jinhe Biotechnology 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 Chengdu Xingrong with a short position of Jinhe Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and Jinhe Biotechnology.
Diversification Opportunities for Chengdu Xingrong and Jinhe Biotechnology
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chengdu and Jinhe is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment and Jinhe Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhe Biotechnology and Chengdu Xingrong 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 Chengdu Xingrong Investment are associated (or correlated) with Jinhe Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhe Biotechnology has no effect on the direction of Chengdu Xingrong i.e., Chengdu Xingrong and Jinhe Biotechnology go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and Jinhe Biotechnology
Assuming the 90 days trading horizon Chengdu Xingrong Investment is expected to generate 0.81 times more return on investment than Jinhe Biotechnology. However, Chengdu Xingrong Investment is 1.23 times less risky than Jinhe Biotechnology. It trades about 0.05 of its potential returns per unit of risk. Jinhe Biotechnology Co is currently generating about -0.02 per unit of risk. If you would invest 478.00 in Chengdu Xingrong Investment on October 14, 2024 and sell it today you would earn a total of 217.00 from holding Chengdu Xingrong Investment or generate 45.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xingrong Investment vs. Jinhe Biotechnology Co
Performance |
| Timeline |
| Chengdu Xingrong Inv |
| Jinhe Biotechnology |
Chengdu Xingrong and Jinhe Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xingrong and Jinhe Biotechnology
The main advantage of trading using opposite Chengdu Xingrong and Jinhe Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong position performs unexpectedly, Jinhe Biotechnology 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 Jinhe Biotechnology will offset losses from the drop in Jinhe Biotechnology's long position.| Chengdu Xingrong vs. Ping An Insurance | Chengdu Xingrong vs. Industrial Bank Co | Chengdu Xingrong vs. Zhangjiagang Freetrade Science | Chengdu Xingrong vs. Xiamen Bank Co |
| Jinhe Biotechnology vs. Beijing Mainstreets Investment | Jinhe Biotechnology vs. Hainan Haiqi Transportation | Jinhe Biotechnology vs. Nuode Investment Co | Jinhe Biotechnology vs. Chengdu Xingrong Investment |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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