Correlation Between Jinhe Biotechnology and Shenzhen Bioeasy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jinhe Biotechnology Co and Shenzhen Bioeasy Biotechnology, you can compare the effects of market volatilities on Jinhe Biotechnology and Shenzhen Bioeasy 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 Shenzhen Bioeasy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Shenzhen Bioeasy.
Diversification Opportunities for Jinhe Biotechnology and Shenzhen Bioeasy
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jinhe and Shenzhen is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology Co and Shenzhen Bioeasy Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Bioeasy Bio 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 Shenzhen Bioeasy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Bioeasy Bio has no effect on the direction of Jinhe Biotechnology i.e., Jinhe Biotechnology and Shenzhen Bioeasy go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Shenzhen Bioeasy
Assuming the 90 days trading horizon Jinhe Biotechnology is expected to generate 4.1 times less return on investment than Shenzhen Bioeasy. But when comparing it to its historical volatility, Jinhe Biotechnology Co is 3.01 times less risky than Shenzhen Bioeasy. It trades about 0.1 of its potential returns per unit of risk. Shenzhen Bioeasy Biotechnology is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 861.00 in Shenzhen Bioeasy Biotechnology on September 1, 2024 and sell it today you would earn a total of 127.00 from holding Shenzhen Bioeasy Biotechnology or generate 14.75% 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. Shenzhen Bioeasy Biotechnology
Performance |
| Timeline |
| Jinhe Biotechnology |
| Shenzhen Bioeasy Bio |
Jinhe Biotechnology and Shenzhen Bioeasy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and Shenzhen Bioeasy
The main advantage of trading using opposite Jinhe Biotechnology and Shenzhen Bioeasy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology position performs unexpectedly, Shenzhen Bioeasy 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 Shenzhen Bioeasy will offset losses from the drop in Shenzhen Bioeasy's long position.| Jinhe Biotechnology vs. Hunan TV Broadcast | Jinhe Biotechnology vs. Anhui Transport Consulting | Jinhe Biotechnology vs. Dazhong Transportation Group | Jinhe Biotechnology vs. Yangmei Chemical Co |
| Shenzhen Bioeasy vs. PetroChina Co Ltd | Shenzhen Bioeasy vs. China Mobile Limited | Shenzhen Bioeasy vs. CNOOC Limited | Shenzhen Bioeasy vs. Ping An Insurance |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Commodity Directory Find actively traded commodities issued by global exchanges |