Correlation Between Jinhe Biotechnology and Puyang Huicheng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jinhe Biotechnology Co and Puyang Huicheng Electronic, you can compare the effects of market volatilities on Jinhe Biotechnology and Puyang Huicheng 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 Puyang Huicheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Puyang Huicheng.
Diversification Opportunities for Jinhe Biotechnology and Puyang Huicheng
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jinhe and Puyang is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology Co and Puyang Huicheng Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puyang Huicheng Elec 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 Puyang Huicheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puyang Huicheng Elec has no effect on the direction of Jinhe Biotechnology i.e., Jinhe Biotechnology and Puyang Huicheng go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Puyang Huicheng
Assuming the 90 days trading horizon Jinhe Biotechnology is expected to generate 1.31 times less return on investment than Puyang Huicheng. But when comparing it to its historical volatility, Jinhe Biotechnology Co is 1.66 times less risky than Puyang Huicheng. It trades about 0.19 of its potential returns per unit of risk. Puyang Huicheng Electronic is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,246 in Puyang Huicheng Electronic on September 3, 2024 and sell it today you would earn a total of 404.00 from holding Puyang Huicheng Electronic or generate 32.42% 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. Puyang Huicheng Electronic
Performance |
| Timeline |
| Jinhe Biotechnology |
| Puyang Huicheng Elec |
Jinhe Biotechnology and Puyang Huicheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and Puyang Huicheng
The main advantage of trading using opposite Jinhe Biotechnology and Puyang Huicheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology position performs unexpectedly, Puyang Huicheng 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 Puyang Huicheng will offset losses from the drop in Puyang Huicheng's long position.| Jinhe Biotechnology vs. Chengdu Kanghua Biological | Jinhe Biotechnology vs. Beijing Wantai Biological | Jinhe Biotechnology vs. Suzhou Novoprotein Scientific | Jinhe Biotechnology vs. Aluminum Corp of |
| Puyang Huicheng vs. Zijin Mining Group | Puyang Huicheng vs. Baoshan Iron Steel | Puyang Huicheng vs. Rongsheng Petrochemical Co | Puyang Huicheng vs. Hoshine Silicon Ind |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |