Correlation Between Jinhe Biotechnology and Guizhou Chanhen
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jinhe Biotechnology Co and Guizhou Chanhen Chemical, you can compare the effects of market volatilities on Jinhe Biotechnology and Guizhou Chanhen 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 Guizhou Chanhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Guizhou Chanhen.
Diversification Opportunities for Jinhe Biotechnology and Guizhou Chanhen
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jinhe and Guizhou is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology Co and Guizhou Chanhen Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guizhou Chanhen Chemical 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 Guizhou Chanhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guizhou Chanhen Chemical has no effect on the direction of Jinhe Biotechnology i.e., Jinhe Biotechnology and Guizhou Chanhen go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Guizhou Chanhen
Assuming the 90 days trading horizon Jinhe Biotechnology Co is expected to under-perform the Guizhou Chanhen. But the stock apears to be less risky and, when comparing its historical volatility, Jinhe Biotechnology Co is 1.11 times less risky than Guizhou Chanhen. The stock trades about 0.0 of its potential returns per unit of risk. The Guizhou Chanhen Chemical is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,250 in Guizhou Chanhen Chemical on October 29, 2024 and sell it today you would lose (55.00) from holding Guizhou Chanhen Chemical or give up 2.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhe Biotechnology Co vs. Guizhou Chanhen Chemical
Performance |
| Timeline |
| Jinhe Biotechnology |
| Guizhou Chanhen Chemical |
Jinhe Biotechnology and Guizhou Chanhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and Guizhou Chanhen
The main advantage of trading using opposite Jinhe Biotechnology and Guizhou Chanhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology position performs unexpectedly, Guizhou Chanhen 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 Guizhou Chanhen will offset losses from the drop in Guizhou Chanhen's long position.| Jinhe Biotechnology vs. Shenzhen AV Display Co | Jinhe Biotechnology vs. Xinhua Winshare Publishing | Jinhe Biotechnology vs. Changjiang Publishing Media | Jinhe Biotechnology vs. Duzhe Publishing Media |
| Guizhou Chanhen vs. Linzhou Heavy Machinery | Guizhou Chanhen vs. Tjk Machinery Tianjin | Guizhou Chanhen vs. Shanghai Construction Group | Guizhou Chanhen vs. Hubei Geoway Investment |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |