Correlation Between Jinhe Biotechnology and Shenzhen SDG
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By analyzing existing cross correlation between Jinhe Biotechnology Co and Shenzhen SDG Information, you can compare the effects of market volatilities on Jinhe Biotechnology and Shenzhen SDG 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 Jinhe Biotechnology with a short position of Shenzhen SDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Shenzhen SDG.
Diversification Opportunities for Jinhe Biotechnology and Shenzhen SDG
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinhe and Shenzhen is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology Co and Shenzhen SDG Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen SDG Information and Jinhe Biotechnology 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 Jinhe Biotechnology Co are associated (or correlated) with Shenzhen SDG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen SDG Information has no effect on the direction of Jinhe Biotechnology i.e., Jinhe Biotechnology and Shenzhen SDG go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Shenzhen SDG
Assuming the 90 days trading horizon Jinhe Biotechnology Co is expected to under-perform the Shenzhen SDG. But the stock apears to be less risky and, when comparing its historical volatility, Jinhe Biotechnology Co is 1.73 times less risky than Shenzhen SDG. The stock trades about -0.01 of its potential returns per unit of risk. The Shenzhen SDG Information is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 720.00 in Shenzhen SDG Information on October 12, 2024 and sell it today you would lose (177.00) from holding Shenzhen SDG Information or give up 24.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhe Biotechnology Co vs. Shenzhen SDG Information
Performance |
| Timeline |
| Jinhe Biotechnology |
| Shenzhen SDG Information |
Jinhe Biotechnology and Shenzhen SDG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and Shenzhen SDG
The main advantage of trading using opposite Jinhe Biotechnology and Shenzhen SDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology position performs unexpectedly, Shenzhen SDG 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 Shenzhen SDG will offset losses from the drop in Shenzhen SDG's long position.| Jinhe Biotechnology vs. New Hope Dairy | Jinhe Biotechnology vs. Jinling Hotel Corp | Jinhe Biotechnology vs. Runjian Communication Co | Jinhe Biotechnology vs. Tongyu Communication |
| Shenzhen SDG vs. Masterwork Machinery | Shenzhen SDG vs. Shanghai V Test Semiconductor | Shenzhen SDG vs. SSAW Hotels Resorts | Shenzhen SDG vs. Bus Online 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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