Correlation Between Central China and Jafron Biomedical
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By analyzing existing cross correlation between Central China Land and Jafron Biomedical Co, you can compare the effects of market volatilities on Central China and Jafron Biomedical 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 Central China with a short position of Jafron Biomedical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central China and Jafron Biomedical.
Diversification Opportunities for Central China and Jafron Biomedical
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Central and Jafron is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Central China Land and Jafron Biomedical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jafron Biomedical and Central China 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 Central China Land are associated (or correlated) with Jafron Biomedical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jafron Biomedical has no effect on the direction of Central China i.e., Central China and Jafron Biomedical go up and down completely randomly.
Pair Corralation between Central China and Jafron Biomedical
Assuming the 90 days trading horizon Central China Land is expected to generate 0.78 times more return on investment than Jafron Biomedical. However, Central China Land is 1.28 times less risky than Jafron Biomedical. It trades about 0.06 of its potential returns per unit of risk. Jafron Biomedical Co is currently generating about 0.04 per unit of risk. If you would invest 966.00 in Central China Land on September 3, 2024 and sell it today you would earn a total of 136.00 from holding Central China Land or generate 14.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Central China Land vs. Jafron Biomedical Co
Performance |
| Timeline |
| Central China Land |
| Jafron Biomedical |
Central China and Jafron Biomedical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Central China and Jafron Biomedical
The main advantage of trading using opposite Central China and Jafron Biomedical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central China position performs unexpectedly, Jafron Biomedical 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 Jafron Biomedical will offset losses from the drop in Jafron Biomedical's long position.| Central China vs. Uroica Mining Safety | Central China vs. Anhui Jianghuai Automobile | Central China vs. Ye Chiu Metal | Central China vs. Zhejiang Yayi Metal |
| Jafron Biomedical vs. Chengdu Kanghua Biological | Jafron Biomedical vs. Beijing Wantai Biological | Jafron Biomedical vs. Suzhou Novoprotein Scientific | Jafron Biomedical vs. Aluminum Corp of |
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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