Correlation Between Jinhe Biotechnology and Gotion High
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jinhe Biotechnology Co and Gotion High tech, you can compare the effects of market volatilities on Jinhe Biotechnology and Gotion High 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 Gotion High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Gotion High.
Diversification Opportunities for Jinhe Biotechnology and Gotion High
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jinhe and Gotion is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology Co and Gotion High tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gotion High tech 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 Gotion High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gotion High tech has no effect on the direction of Jinhe Biotechnology i.e., Jinhe Biotechnology and Gotion High go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Gotion High
Assuming the 90 days trading horizon Jinhe Biotechnology is expected to generate 1.12 times less return on investment than Gotion High. But when comparing it to its historical volatility, Jinhe Biotechnology Co is 1.54 times less risky than Gotion High. It trades about 0.18 of its potential returns per unit of risk. Gotion High tech is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,840 in Gotion High tech on September 2, 2024 and sell it today you would earn a total of 481.00 from holding Gotion High tech or generate 26.14% 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. Gotion High tech
Performance |
| Timeline |
| Jinhe Biotechnology |
| Gotion High tech |
Jinhe Biotechnology and Gotion High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and Gotion High
The main advantage of trading using opposite Jinhe Biotechnology and Gotion High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology position performs unexpectedly, Gotion High 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 Gotion High will offset losses from the drop in Gotion High's long position.| Jinhe Biotechnology vs. China Petroleum Chemical | Jinhe Biotechnology vs. PetroChina Co Ltd | Jinhe Biotechnology vs. China State Construction | Jinhe Biotechnology vs. China Railway Group |
| Gotion High vs. Cultural Investment Holdings | Gotion High vs. Gome Telecom Equipment | Gotion High vs. Bus Online Co | Gotion High vs. Holitech Technology 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |