Correlation Between Jinhe Biotechnology and Kingnet Network
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By analyzing existing cross correlation between Jinhe Biotechnology Co and Kingnet Network Co, you can compare the effects of market volatilities on Jinhe Biotechnology and Kingnet Network 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 Kingnet Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Kingnet Network.
Diversification Opportunities for Jinhe Biotechnology and Kingnet Network
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jinhe and Kingnet is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology Co and Kingnet Network Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingnet Network 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 Kingnet Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingnet Network has no effect on the direction of Jinhe Biotechnology i.e., Jinhe Biotechnology and Kingnet Network go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Kingnet Network
Assuming the 90 days trading horizon Jinhe Biotechnology Co is expected to generate 0.61 times more return on investment than Kingnet Network. However, Jinhe Biotechnology Co is 1.63 times less risky than Kingnet Network. It trades about 0.18 of its potential returns per unit of risk. Kingnet Network Co is currently generating about -0.02 per unit of risk. If you would invest 439.00 in Jinhe Biotechnology Co on September 4, 2024 and sell it today you would earn a total of 29.00 from holding Jinhe Biotechnology Co or generate 6.61% 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. Kingnet Network Co
Performance |
| Timeline |
| Jinhe Biotechnology |
| Kingnet Network |
Jinhe Biotechnology and Kingnet Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and Kingnet Network
The main advantage of trading using opposite Jinhe Biotechnology and Kingnet Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology position performs unexpectedly, Kingnet Network 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 Kingnet Network will offset losses from the drop in Kingnet Network's long position.| Jinhe Biotechnology vs. Sichuan Fulin Transportation | Jinhe Biotechnology vs. Fujian Longzhou Transportation | Jinhe Biotechnology vs. Hunan TV Broadcast | Jinhe Biotechnology vs. Spring Airlines Co |
| Kingnet Network vs. Tianshui Huatian Technology | Kingnet Network vs. Anhui Liuguo Chemical | Kingnet Network vs. Jinhe Biotechnology Co | Kingnet Network vs. Changchun UP Optotech |
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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