Correlation Between Jinhe Biotechnology and Zhejiang Qianjiang
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By analyzing existing cross correlation between Jinhe Biotechnology Co and Zhejiang Qianjiang Motorcycle, you can compare the effects of market volatilities on Jinhe Biotechnology and Zhejiang Qianjiang 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 Zhejiang Qianjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Zhejiang Qianjiang.
Diversification Opportunities for Jinhe Biotechnology and Zhejiang Qianjiang
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinhe and Zhejiang is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology Co and Zhejiang Qianjiang Motorcycle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Qianjiang 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 Zhejiang Qianjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Qianjiang has no effect on the direction of Jinhe Biotechnology i.e., Jinhe Biotechnology and Zhejiang Qianjiang go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Zhejiang Qianjiang
Assuming the 90 days trading horizon Jinhe Biotechnology Co is expected to generate 0.99 times more return on investment than Zhejiang Qianjiang. However, Jinhe Biotechnology Co is 1.01 times less risky than Zhejiang Qianjiang. It trades about 0.19 of its potential returns per unit of risk. Zhejiang Qianjiang Motorcycle is currently generating about 0.02 per unit of risk. If you would invest 426.00 in Jinhe Biotechnology Co on September 19, 2024 and sell it today you would earn a total of 36.00 from holding Jinhe Biotechnology Co or generate 8.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhe Biotechnology Co vs. Zhejiang Qianjiang Motorcycle
Performance |
| Timeline |
| Jinhe Biotechnology |
| Zhejiang Qianjiang |
Jinhe Biotechnology and Zhejiang Qianjiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and Zhejiang Qianjiang
The main advantage of trading using opposite Jinhe Biotechnology and Zhejiang Qianjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology position performs unexpectedly, Zhejiang Qianjiang 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 Zhejiang Qianjiang will offset losses from the drop in Zhejiang Qianjiang's long position.| Jinhe Biotechnology vs. BeiGene | Jinhe Biotechnology vs. Kweichow Moutai Co | Jinhe Biotechnology vs. Beijing Roborock Technology | Jinhe Biotechnology vs. G bits Network Technology |
| Zhejiang Qianjiang vs. Fiberhome Telecommunication Technologies | Zhejiang Qianjiang vs. Will Semiconductor Co | Zhejiang Qianjiang vs. HaiXin Foods Co | Zhejiang Qianjiang vs. Dongfeng Automobile 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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