Correlation Between Jinhe Biotechnology and Jiangsu Yanghe
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By analyzing existing cross correlation between Jinhe Biotechnology Co and Jiangsu Yanghe Brewery, you can compare the effects of market volatilities on Jinhe Biotechnology and Jiangsu Yanghe 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 Jiangsu Yanghe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Jiangsu Yanghe.
Diversification Opportunities for Jinhe Biotechnology and Jiangsu Yanghe
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinhe and Jiangsu is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology Co and Jiangsu Yanghe Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yanghe Brewery 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 Jiangsu Yanghe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yanghe Brewery has no effect on the direction of Jinhe Biotechnology i.e., Jinhe Biotechnology and Jiangsu Yanghe go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Jiangsu Yanghe
Assuming the 90 days trading horizon Jinhe Biotechnology Co is expected to under-perform the Jiangsu Yanghe. In addition to that, Jinhe Biotechnology is 2.92 times more volatile than Jiangsu Yanghe Brewery. It trades about -0.05 of its total potential returns per unit of risk. Jiangsu Yanghe Brewery is currently generating about -0.13 per unit of volatility. If you would invest 8,071 in Jiangsu Yanghe Brewery on October 30, 2024 and sell it today you would lose (231.00) from holding Jiangsu Yanghe Brewery or give up 2.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhe Biotechnology Co vs. Jiangsu Yanghe Brewery
Performance |
| Timeline |
| Jinhe Biotechnology |
| Jiangsu Yanghe Brewery |
Jinhe Biotechnology and Jiangsu Yanghe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and Jiangsu Yanghe
The main advantage of trading using opposite Jinhe Biotechnology and Jiangsu Yanghe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology position performs unexpectedly, Jiangsu Yanghe 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 Jiangsu Yanghe will offset losses from the drop in Jiangsu Yanghe's long position.| Jinhe Biotechnology vs. Ming Yang Smart | Jinhe Biotechnology vs. 159681 | Jinhe Biotechnology vs. 159005 | Jinhe Biotechnology vs. Loctek Ergonomic Technology |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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