Correlation Between Jinhe Biotechnology and Zhengzhou Qianweiyangchu
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By analyzing existing cross correlation between Jinhe Biotechnology Co and Zhengzhou Qianweiyangchu Food, you can compare the effects of market volatilities on Jinhe Biotechnology and Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Zhengzhou Qianweiyangchu.
Diversification Opportunities for Jinhe Biotechnology and Zhengzhou Qianweiyangchu
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinhe and Zhengzhou is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology Co and Zhengzhou Qianweiyangchu Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengzhou Qianweiyangchu has no effect on the direction of Jinhe Biotechnology i.e., Jinhe Biotechnology and Zhengzhou Qianweiyangchu go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Zhengzhou Qianweiyangchu
Assuming the 90 days trading horizon Jinhe Biotechnology Co is expected to generate 0.93 times more return on investment than Zhengzhou Qianweiyangchu. However, Jinhe Biotechnology Co is 1.08 times less risky than Zhengzhou Qianweiyangchu. It trades about -0.35 of its potential returns per unit of risk. Zhengzhou Qianweiyangchu Food is currently generating about -0.59 per unit of risk. If you would invest 486.00 in Jinhe Biotechnology Co on October 14, 2024 and sell it today you would lose (85.00) from holding Jinhe Biotechnology Co or give up 17.49% 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. Zhengzhou Qianweiyangchu Food
Performance |
| Timeline |
| Jinhe Biotechnology |
| Zhengzhou Qianweiyangchu |
Jinhe Biotechnology and Zhengzhou Qianweiyangchu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and Zhengzhou Qianweiyangchu
The main advantage of trading using opposite Jinhe Biotechnology and Zhengzhou Qianweiyangchu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology position performs unexpectedly, Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu will offset losses from the drop in Zhengzhou Qianweiyangchu's long position.| Jinhe Biotechnology vs. Tangel Publishing | Jinhe Biotechnology vs. Jiangsu Phoenix Publishing | Jinhe Biotechnology vs. COL Digital Publishing | Jinhe Biotechnology vs. Northern United Publishing |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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