Correlation Between Jinhe Biotechnology and Kuangda Technology
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By analyzing existing cross correlation between Jinhe Biotechnology Co and Kuangda Technology Group, you can compare the effects of market volatilities on Jinhe Biotechnology and Kuangda Technology 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 Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Kuangda Technology.
Diversification Opportunities for Jinhe Biotechnology and Kuangda Technology
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jinhe and Kuangda is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology Co and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology 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 Kuangda Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuangda Technology has no effect on the direction of Jinhe Biotechnology i.e., Jinhe Biotechnology and Kuangda Technology go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Kuangda Technology
Assuming the 90 days trading horizon Jinhe Biotechnology Co is expected to under-perform the Kuangda Technology. But the stock apears to be less risky and, when comparing its historical volatility, Jinhe Biotechnology Co is 1.14 times less risky than Kuangda Technology. The stock trades about -0.01 of its potential returns per unit of risk. The Kuangda Technology Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 539.00 in Kuangda Technology Group on August 25, 2024 and sell it today you would lose (11.00) from holding Kuangda Technology Group or give up 2.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhe Biotechnology Co vs. Kuangda Technology Group
Performance |
| Timeline |
| Jinhe Biotechnology |
| Kuangda Technology |
Jinhe Biotechnology and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and Kuangda Technology
The main advantage of trading using opposite Jinhe Biotechnology and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology position performs unexpectedly, Kuangda Technology 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 Kuangda Technology will offset losses from the drop in Kuangda Technology'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 |
| Kuangda Technology vs. BeiGene | Kuangda Technology vs. Kweichow Moutai Co | Kuangda Technology vs. Beijing Roborock Technology | Kuangda Technology vs. G bits Network Technology |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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