Correlation Between Jinhe Biotechnology and Shengda Mining
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By analyzing existing cross correlation between Jinhe Biotechnology Co and Shengda Mining Co, you can compare the effects of market volatilities on Jinhe Biotechnology and Shengda Mining 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 Shengda Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Shengda Mining.
Diversification Opportunities for Jinhe Biotechnology and Shengda Mining
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jinhe and Shengda is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology Co and Shengda Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengda Mining 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 Shengda Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengda Mining has no effect on the direction of Jinhe Biotechnology i.e., Jinhe Biotechnology and Shengda Mining go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Shengda Mining
Assuming the 90 days trading horizon Jinhe Biotechnology Co is expected to under-perform the Shengda Mining. But the stock apears to be less risky and, when comparing its historical volatility, Jinhe Biotechnology Co is 1.53 times less risky than Shengda Mining. The stock trades about -0.01 of its potential returns per unit of risk. The Shengda Mining Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,432 in Shengda Mining Co on October 11, 2024 and sell it today you would lose (217.00) from holding Shengda Mining Co or give up 15.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Jinhe Biotechnology Co vs. Shengda Mining Co
Performance |
| Timeline |
| Jinhe Biotechnology |
| Shengda Mining |
Jinhe Biotechnology and Shengda Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and Shengda Mining
The main advantage of trading using opposite Jinhe Biotechnology and Shengda Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology position performs unexpectedly, Shengda Mining 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 Shengda Mining will offset losses from the drop in Shengda Mining's long position.| 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 |
| Shengda Mining vs. Jinhe Biotechnology Co | Shengda Mining vs. Bomesc Offshore Engineering | Shengda Mining vs. Beijing Mainstreets Investment | Shengda Mining vs. Beijing Yanjing Brewery |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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