Correlation Between Beijing Mainstreets and Jinhe Biotechnology
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By analyzing existing cross correlation between Beijing Mainstreets Investment and Jinhe Biotechnology Co, you can compare the effects of market volatilities on Beijing Mainstreets 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 Beijing Mainstreets with a short position of Jinhe Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and Jinhe Biotechnology.
Diversification Opportunities for Beijing Mainstreets and Jinhe Biotechnology
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Jinhe is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets 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 Beijing Mainstreets 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 Beijing Mainstreets 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 Beijing Mainstreets i.e., Beijing Mainstreets and Jinhe Biotechnology go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and Jinhe Biotechnology
Assuming the 90 days trading horizon Beijing Mainstreets Investment is expected to under-perform the Jinhe Biotechnology. In addition to that, Beijing Mainstreets is 1.93 times more volatile than Jinhe Biotechnology Co. It trades about -0.02 of its total potential returns per unit of risk. Jinhe Biotechnology Co is currently generating about -0.02 per unit of volatility. If you would invest 527.00 in Jinhe Biotechnology Co on October 14, 2024 and sell it today you would lose (126.00) from holding Jinhe Biotechnology Co or give up 23.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Mainstreets Investment vs. Jinhe Biotechnology Co
Performance |
| Timeline |
| Beijing Mainstreets |
| Jinhe Biotechnology |
Beijing Mainstreets and Jinhe Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Mainstreets and Jinhe Biotechnology
The main advantage of trading using opposite Beijing Mainstreets and Jinhe Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets 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.| Beijing Mainstreets vs. King Strong New Material | Beijing Mainstreets vs. Shuhua Sports Co | Beijing Mainstreets vs. Jiangsu Jinling Sports | Beijing Mainstreets vs. Dazhong Transportation Group |
| 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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