Correlation Between Tianshui Huatian and Jinhe Biotechnology
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By analyzing existing cross correlation between Tianshui Huatian Technology and Jinhe Biotechnology Co, you can compare the effects of market volatilities on Tianshui Huatian 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 Tianshui Huatian with a short position of Jinhe Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshui Huatian and Jinhe Biotechnology.
Diversification Opportunities for Tianshui Huatian and Jinhe Biotechnology
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tianshui and Jinhe is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Tianshui Huatian Technology and Jinhe Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhe Biotechnology and Tianshui Huatian 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 Tianshui Huatian 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 Tianshui Huatian i.e., Tianshui Huatian and Jinhe Biotechnology go up and down completely randomly.
Pair Corralation between Tianshui Huatian and Jinhe Biotechnology
Assuming the 90 days trading horizon Tianshui Huatian Technology is expected to generate 0.53 times more return on investment than Jinhe Biotechnology. However, Tianshui Huatian Technology is 1.9 times less risky than Jinhe Biotechnology. It trades about 0.23 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 1,055 in Tianshui Huatian Technology on November 4, 2024 and sell it today you would earn a total of 71.00 from holding Tianshui Huatian Technology or generate 6.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianshui Huatian Technology vs. Jinhe Biotechnology Co
Performance |
| Timeline |
| Tianshui Huatian Tec |
| Jinhe Biotechnology |
Tianshui Huatian and Jinhe Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshui Huatian and Jinhe Biotechnology
The main advantage of trading using opposite Tianshui Huatian and Jinhe Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshui Huatian 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.| Tianshui Huatian vs. Chahua Modern Housewares | Tianshui Huatian vs. Guangzhou Seagull Kitchen | Tianshui Huatian vs. 360 Security Technology | Tianshui Huatian vs. Jinling Hotel Corp |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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