Correlation Between Jinhe Biotechnology and Shenyang Chemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jinhe Biotechnology Co and Shenyang Chemical Industry, you can compare the effects of market volatilities on Jinhe Biotechnology and Shenyang Chemical 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 Shenyang Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Shenyang Chemical.
Diversification Opportunities for Jinhe Biotechnology and Shenyang Chemical
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jinhe and Shenyang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology Co and Shenyang Chemical Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Chemical 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 Shenyang Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Chemical has no effect on the direction of Jinhe Biotechnology i.e., Jinhe Biotechnology and Shenyang Chemical go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Shenyang Chemical
Assuming the 90 days trading horizon Jinhe Biotechnology is expected to generate 2.05 times less return on investment than Shenyang Chemical. But when comparing it to its historical volatility, Jinhe Biotechnology Co is 1.81 times less risky than Shenyang Chemical. It trades about 0.1 of its potential returns per unit of risk. Shenyang Chemical Industry is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 343.00 in Shenyang Chemical Industry on September 1, 2024 and sell it today you would earn a total of 26.00 from holding Shenyang Chemical Industry or generate 7.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhe Biotechnology Co vs. Shenyang Chemical Industry
Performance |
| Timeline |
| Jinhe Biotechnology |
| Shenyang Chemical |
Jinhe Biotechnology and Shenyang Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and Shenyang Chemical
The main advantage of trading using opposite Jinhe Biotechnology and Shenyang Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology position performs unexpectedly, Shenyang Chemical 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 Shenyang Chemical will offset losses from the drop in Shenyang Chemical's long position.| Jinhe Biotechnology vs. Hunan TV Broadcast | Jinhe Biotechnology vs. Anhui Transport Consulting | Jinhe Biotechnology vs. Dazhong Transportation Group | Jinhe Biotechnology vs. Yangmei Chemical Co |
| Shenyang Chemical vs. Yindu Kitchen Equipment | Shenyang Chemical vs. Dymatic Chemicals | Shenyang Chemical vs. Jahen Household Products | Shenyang Chemical vs. China National Software |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |