Correlation Between Jiangxi Hengda and Jinhe Biotechnology
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By analyzing existing cross correlation between Jiangxi Hengda Hi Tech and Jinhe Biotechnology Co, you can compare the effects of market volatilities on Jiangxi Hengda 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 Jiangxi Hengda with a short position of Jinhe Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Hengda and Jinhe Biotechnology.
Diversification Opportunities for Jiangxi Hengda and Jinhe Biotechnology
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangxi and Jinhe is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Hengda Hi Tech and Jinhe Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhe Biotechnology and Jiangxi Hengda 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 Jiangxi Hengda Hi Tech 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 Jiangxi Hengda i.e., Jiangxi Hengda and Jinhe Biotechnology go up and down completely randomly.
Pair Corralation between Jiangxi Hengda and Jinhe Biotechnology
Assuming the 90 days trading horizon Jiangxi Hengda Hi Tech is expected to under-perform the Jinhe Biotechnology. In addition to that, Jiangxi Hengda is 1.43 times more volatile than Jinhe Biotechnology Co. It trades about 0.0 of its total potential returns per unit of risk. Jinhe Biotechnology Co is currently generating about 0.0 per unit of volatility. If you would invest 443.00 in Jinhe Biotechnology Co on October 25, 2024 and sell it today you would lose (7.00) from holding Jinhe Biotechnology Co or give up 1.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Hengda Hi Tech vs. Jinhe Biotechnology Co
Performance |
| Timeline |
| Jiangxi Hengda Hi |
| Jinhe Biotechnology |
Jiangxi Hengda and Jinhe Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Hengda and Jinhe Biotechnology
The main advantage of trading using opposite Jiangxi Hengda and Jinhe Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Hengda 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.| Jiangxi Hengda vs. Zijin Mining Group | Jiangxi Hengda vs. Wanhua Chemical Group | Jiangxi Hengda vs. Baoshan Iron Steel | Jiangxi Hengda vs. Rongsheng Petrochemical Co |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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