Correlation Between Shenyang Huitian and Jinhe Biotechnology
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Jinhe Biotechnology Co, you can compare the effects of market volatilities on Shenyang Huitian 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 Shenyang Huitian with a short position of Jinhe Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Jinhe Biotechnology.
Diversification Opportunities for Shenyang Huitian and Jinhe Biotechnology
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenyang and Jinhe is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Jinhe Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhe Biotechnology and Shenyang Huitian 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 Shenyang Huitian Thermal 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 Shenyang Huitian i.e., Shenyang Huitian and Jinhe Biotechnology go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Jinhe Biotechnology
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to generate 1.29 times more return on investment than Jinhe Biotechnology. However, Shenyang Huitian is 1.29 times more volatile than Jinhe Biotechnology Co. It trades about 0.01 of its potential returns per unit of risk. Jinhe Biotechnology Co is currently generating about -0.01 per unit of risk. If you would invest 372.00 in Shenyang Huitian Thermal on August 28, 2024 and sell it today you would lose (3.00) from holding Shenyang Huitian Thermal or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Jinhe Biotechnology Co
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Jinhe Biotechnology |
Shenyang Huitian and Jinhe Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Jinhe Biotechnology
The main advantage of trading using opposite Shenyang Huitian and Jinhe Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian 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.| Shenyang Huitian vs. Wuhan Yangtze Communication | Shenyang Huitian vs. Henzhen Zhaowei Machinery | Shenyang Huitian vs. Sinomach General Machinery | Shenyang Huitian vs. Nanjing Putian Telecommunications |
| Jinhe Biotechnology vs. Industrial and Commercial | Jinhe Biotechnology vs. Agricultural Bank of | Jinhe Biotechnology vs. China Construction Bank | Jinhe Biotechnology vs. Bank of China |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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