Correlation Between Jinhe Biotechnology and Sichuan Fulin
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By analyzing existing cross correlation between Jinhe Biotechnology Co and Sichuan Fulin Transportation, you can compare the effects of market volatilities on Jinhe Biotechnology and Sichuan Fulin 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 Sichuan Fulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Sichuan Fulin.
Diversification Opportunities for Jinhe Biotechnology and Sichuan Fulin
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinhe and Sichuan is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology Co and Sichuan Fulin Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Fulin Transp 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 Sichuan Fulin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Fulin Transp has no effect on the direction of Jinhe Biotechnology i.e., Jinhe Biotechnology and Sichuan Fulin go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Sichuan Fulin
Assuming the 90 days trading horizon Jinhe Biotechnology Co is expected to generate 0.88 times more return on investment than Sichuan Fulin. However, Jinhe Biotechnology Co is 1.14 times less risky than Sichuan Fulin. It trades about -0.35 of its potential returns per unit of risk. Sichuan Fulin Transportation is currently generating about -0.32 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. Sichuan Fulin Transportation
Performance |
| Timeline |
| Jinhe Biotechnology |
| Sichuan Fulin Transp |
Jinhe Biotechnology and Sichuan Fulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and Sichuan Fulin
The main advantage of trading using opposite Jinhe Biotechnology and Sichuan Fulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology position performs unexpectedly, Sichuan Fulin 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 Sichuan Fulin will offset losses from the drop in Sichuan Fulin's long position.| Jinhe Biotechnology vs. Beijing Mainstreets Investment | Jinhe Biotechnology vs. Hainan Haiqi Transportation | Jinhe Biotechnology vs. Nuode Investment Co | Jinhe Biotechnology vs. Chengdu Xingrong Investment |
| Sichuan Fulin vs. Xiangyu Medical Co | Sichuan Fulin vs. Jinhe Biotechnology Co | Sichuan Fulin vs. Winner Medical Co | Sichuan Fulin vs. Montage 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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