Correlation Between China Securities and Jinhe Biotechnology
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By analyzing existing cross correlation between China Securities 800 and Jinhe Biotechnology Co, you can compare the effects of market volatilities on China Securities 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 China Securities with a short position of Jinhe Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Jinhe Biotechnology.
Diversification Opportunities for China Securities and Jinhe Biotechnology
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Jinhe is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Jinhe Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhe Biotechnology and China Securities 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 China Securities 800 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 China Securities i.e., China Securities and Jinhe Biotechnology go up and down completely randomly.
Pair Corralation between China Securities and Jinhe Biotechnology
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.37 times more return on investment than Jinhe Biotechnology. However, China Securities 800 is 2.71 times less risky than Jinhe Biotechnology. It trades about -0.03 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 415,867 in China Securities 800 on October 26, 2024 and sell it today you would lose (6,238) from holding China Securities 800 or give up 1.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
China Securities 800 vs. Jinhe Biotechnology Co
Performance |
| Timeline |
China Securities and Jinhe Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Jinhe Biotechnology Co
Pair trading matchups for Jinhe Biotechnology
Pair Trading with China Securities and Jinhe Biotechnology
The main advantage of trading using opposite China Securities and Jinhe Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities 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.| China Securities vs. Huatian Hotel Group | China Securities vs. Shengda Mining Co | China Securities vs. Chengtun Mining Group | China Securities vs. Liaoning Dingjide Petrochemical |
| Jinhe Biotechnology vs. Beingmate Baby Child | Jinhe Biotechnology vs. FSPG Hi Tech Co | Jinhe Biotechnology vs. Zhejiang JIULI Hi tech | Jinhe Biotechnology vs. Heilongjiang Transport Development |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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