Correlation Between Guangzhou KingTeller and Jinhe Biotechnology
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Jinhe Biotechnology Co, you can compare the effects of market volatilities on Guangzhou KingTeller 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 Guangzhou KingTeller with a short position of Jinhe Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Jinhe Biotechnology.
Diversification Opportunities for Guangzhou KingTeller and Jinhe Biotechnology
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Jinhe is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Jinhe Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhe Biotechnology and Guangzhou KingTeller 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 Guangzhou KingTeller Technology 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 Guangzhou KingTeller i.e., Guangzhou KingTeller and Jinhe Biotechnology go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Jinhe Biotechnology
Assuming the 90 days trading horizon Guangzhou KingTeller Technology is expected to generate 1.36 times more return on investment than Jinhe Biotechnology. However, Guangzhou KingTeller is 1.36 times more volatile than Jinhe Biotechnology Co. It trades about 0.13 of its potential returns per unit of risk. Jinhe Biotechnology Co is currently generating about 0.06 per unit of risk. If you would invest 420.00 in Guangzhou KingTeller Technology on November 4, 2024 and sell it today you would earn a total of 38.00 from holding Guangzhou KingTeller Technology or generate 9.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou KingTeller Technolog vs. Jinhe Biotechnology Co
Performance |
| Timeline |
| Guangzhou KingTeller |
| Jinhe Biotechnology |
Guangzhou KingTeller and Jinhe Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Jinhe Biotechnology
The main advantage of trading using opposite Guangzhou KingTeller and Jinhe Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller 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.| Guangzhou KingTeller vs. Fujian Oriental Silver | Guangzhou KingTeller vs. Huaibei Mining Holdings | Guangzhou KingTeller vs. Luolai Home Textile | Guangzhou KingTeller vs. Shenyang Blue Silver |
| Jinhe Biotechnology vs. Ningxia Younglight Chemicals | Jinhe Biotechnology vs. Easyhome New Retail | Jinhe Biotechnology vs. Sanbo Hospital Management | Jinhe Biotechnology vs. Porton Fine Chemicals |
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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