Correlation Between Jinhe Biotechnology and Sungrow Power
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By analyzing existing cross correlation between Jinhe Biotechnology Co and Sungrow Power Supply, you can compare the effects of market volatilities on Jinhe Biotechnology and Sungrow Power 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 Sungrow Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Sungrow Power.
Diversification Opportunities for Jinhe Biotechnology and Sungrow Power
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jinhe and Sungrow is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology Co and Sungrow Power Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungrow Power Supply 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 Sungrow Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungrow Power Supply has no effect on the direction of Jinhe Biotechnology i.e., Jinhe Biotechnology and Sungrow Power go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Sungrow Power
Assuming the 90 days trading horizon Jinhe Biotechnology Co is expected to under-perform the Sungrow Power. But the stock apears to be less risky and, when comparing its historical volatility, Jinhe Biotechnology Co is 1.24 times less risky than Sungrow Power. The stock trades about 0.0 of its potential returns per unit of risk. The Sungrow Power Supply is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 6,368 in Sungrow Power Supply on October 14, 2024 and sell it today you would earn a total of 747.00 from holding Sungrow Power Supply or generate 11.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhe Biotechnology Co vs. Sungrow Power Supply
Performance |
| Timeline |
| Jinhe Biotechnology |
| Sungrow Power Supply |
Jinhe Biotechnology and Sungrow Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and Sungrow Power
The main advantage of trading using opposite Jinhe Biotechnology and Sungrow Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology position performs unexpectedly, Sungrow Power 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 Sungrow Power will offset losses from the drop in Sungrow Power's long position.| Jinhe Biotechnology vs. Tangel Publishing | Jinhe Biotechnology vs. Jiangsu Phoenix Publishing | Jinhe Biotechnology vs. COL Digital Publishing | Jinhe Biotechnology vs. Northern United Publishing |
| Sungrow Power vs. Jinhe Biotechnology Co | Sungrow Power vs. Changchun UP Optotech | Sungrow Power vs. Eyebright Medical Technology | Sungrow Power vs. Linewell Software 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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