Correlation Between Jinhe Biotechnology and Innovative Medical
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By analyzing existing cross correlation between Jinhe Biotechnology Co and Innovative Medical Management, you can compare the effects of market volatilities on Jinhe Biotechnology and Innovative Medical 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 Innovative Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Innovative Medical.
Diversification Opportunities for Jinhe Biotechnology and Innovative Medical
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jinhe and Innovative is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology Co and Innovative Medical Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovative Medical 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 Innovative Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovative Medical has no effect on the direction of Jinhe Biotechnology i.e., Jinhe Biotechnology and Innovative Medical go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Innovative Medical
Assuming the 90 days trading horizon Jinhe Biotechnology Co is expected to under-perform the Innovative Medical. But the stock apears to be less risky and, when comparing its historical volatility, Jinhe Biotechnology Co is 2.67 times less risky than Innovative Medical. The stock trades about -0.04 of its potential returns per unit of risk. The Innovative Medical Management is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 765.00 in Innovative Medical Management on August 27, 2024 and sell it today you would earn a total of 44.00 from holding Innovative Medical Management or generate 5.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhe Biotechnology Co vs. Innovative Medical Management
Performance |
| Timeline |
| Jinhe Biotechnology |
| Innovative Medical |
Jinhe Biotechnology and Innovative Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and Innovative Medical
The main advantage of trading using opposite Jinhe Biotechnology and Innovative Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology position performs unexpectedly, Innovative Medical 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 Innovative Medical will offset losses from the drop in Innovative Medical's long position.| Jinhe Biotechnology vs. Industrial and Commercial | Jinhe Biotechnology vs. Agricultural Bank of | Jinhe Biotechnology vs. China Construction Bank | Jinhe Biotechnology vs. Bank of China |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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