Correlation Between Jinhe Biotechnology and Hangzhou Minsheng
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By analyzing existing cross correlation between Jinhe Biotechnology Co and Hangzhou Minsheng Healthcare, you can compare the effects of market volatilities on Jinhe Biotechnology and Hangzhou Minsheng 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 Hangzhou Minsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Hangzhou Minsheng.
Diversification Opportunities for Jinhe Biotechnology and Hangzhou Minsheng
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinhe and Hangzhou is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology Co and Hangzhou Minsheng Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Minsheng 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 Hangzhou Minsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Minsheng has no effect on the direction of Jinhe Biotechnology i.e., Jinhe Biotechnology and Hangzhou Minsheng go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Hangzhou Minsheng
Assuming the 90 days trading horizon Jinhe Biotechnology Co is expected to generate 0.64 times more return on investment than Hangzhou Minsheng. However, Jinhe Biotechnology Co is 1.57 times less risky than Hangzhou Minsheng. It trades about -0.01 of its potential returns per unit of risk. Hangzhou Minsheng Healthcare is currently generating about -0.07 per unit of risk. If you would invest 531.00 in Jinhe Biotechnology Co on October 31, 2024 and sell it today you would lose (95.00) from holding Jinhe Biotechnology Co or give up 17.89% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 70.48% |
Values | Daily Returns |
Jinhe Biotechnology Co vs. Hangzhou Minsheng Healthcare
Performance |
Timeline |
Jinhe Biotechnology |
Hangzhou Minsheng |
Jinhe Biotechnology and Hangzhou Minsheng Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jinhe Biotechnology and Hangzhou Minsheng
The main advantage of trading using opposite Jinhe Biotechnology and Hangzhou Minsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology position performs unexpectedly, Hangzhou Minsheng 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 Hangzhou Minsheng will offset losses from the drop in Hangzhou Minsheng's long position.Jinhe Biotechnology vs. Nuode Investment Co | ||
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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