Correlation Between China Securities and Jafron Biomedical
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By analyzing existing cross correlation between China Securities 800 and Jafron Biomedical Co, you can compare the effects of market volatilities on China Securities 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 China Securities with a short position of Jafron Biomedical. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Jafron Biomedical.
Diversification Opportunities for China Securities and Jafron Biomedical
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Jafron is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Jafron Biomedical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jafron Biomedical 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 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 China Securities i.e., China Securities and Jafron Biomedical go up and down completely randomly.
Pair Corralation between China Securities and Jafron Biomedical
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.61 times more return on investment than Jafron Biomedical. However, China Securities 800 is 1.63 times less risky than Jafron Biomedical. It trades about 0.01 of its potential returns per unit of risk. Jafron Biomedical Co is currently generating about -0.03 per unit of risk. If you would invest 422,415 in China Securities 800 on September 1, 2024 and sell it today you would earn a total of 1,121 from holding China Securities 800 or generate 0.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Securities 800 vs. Jafron Biomedical Co
Performance |
| Timeline |
China Securities and Jafron Biomedical Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Jafron Biomedical Co
Pair trading matchups for Jafron Biomedical
Pair Trading with China Securities and Jafron Biomedical
The main advantage of trading using opposite China Securities and Jafron Biomedical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities 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.| China Securities vs. Everjoy Health Group | China Securities vs. Fuzhou Rockchip Electronics | China Securities vs. Hangzhou Prevail Optoelectronic | China Securities vs. Aurora Optoelectronics Co |
| Jafron Biomedical vs. Nanjing Putian Telecommunications | Jafron Biomedical vs. Shenzhen Hifuture Electric | Jafron Biomedical vs. Tianjin Realty Development | Jafron Biomedical vs. Shenyang Huitian Thermal |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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