Correlation Between Huasi Agricultural and Jinhe Biotechnology
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By analyzing existing cross correlation between Huasi Agricultural Development and Jinhe Biotechnology Co, you can compare the effects of market volatilities on Huasi Agricultural 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 Huasi Agricultural with a short position of Jinhe Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huasi Agricultural and Jinhe Biotechnology.
Diversification Opportunities for Huasi Agricultural and Jinhe Biotechnology
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Huasi and Jinhe is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Huasi Agricultural Development and Jinhe Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhe Biotechnology and Huasi Agricultural 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 Huasi Agricultural Development 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 Huasi Agricultural i.e., Huasi Agricultural and Jinhe Biotechnology go up and down completely randomly.
Pair Corralation between Huasi Agricultural and Jinhe Biotechnology
Assuming the 90 days trading horizon Huasi Agricultural Development is expected to generate 1.44 times more return on investment than Jinhe Biotechnology. However, Huasi Agricultural is 1.44 times more volatile than Jinhe Biotechnology Co. It trades about 0.0 of its potential returns per unit of risk. Jinhe Biotechnology Co is currently generating about -0.01 per unit of risk. If you would invest 492.00 in Huasi Agricultural Development on October 11, 2024 and sell it today you would lose (93.00) from holding Huasi Agricultural Development or give up 18.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huasi Agricultural Development vs. Jinhe Biotechnology Co
Performance |
| Timeline |
| Huasi Agricultural |
| Jinhe Biotechnology |
Huasi Agricultural and Jinhe Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huasi Agricultural and Jinhe Biotechnology
The main advantage of trading using opposite Huasi Agricultural and Jinhe Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huasi Agricultural 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.| Huasi Agricultural vs. MayAir Technology Co | Huasi Agricultural vs. Shenzhen Clou Electronics | Huasi Agricultural vs. Jinlong Machinery Electronic | Huasi Agricultural vs. Huatian Hotel Group |
| Jinhe Biotechnology vs. Jiangsu Financial Leasing | Jinhe Biotechnology vs. Tengda Construction Group | Jinhe Biotechnology vs. Jiangxi Hengda Hi Tech | Jinhe Biotechnology vs. Huasi Agricultural 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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