Correlation Between Jinhe Biotechnology and Gansu Jiu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jinhe Biotechnology Co and Gansu Jiu Steel, you can compare the effects of market volatilities on Jinhe Biotechnology and Gansu Jiu 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 Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Gansu Jiu.
Diversification Opportunities for Jinhe Biotechnology and Gansu Jiu
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinhe and Gansu is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology Co and Gansu Jiu Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Jiu Steel 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 Gansu Jiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Jiu Steel has no effect on the direction of Jinhe Biotechnology i.e., Jinhe Biotechnology and Gansu Jiu go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Gansu Jiu
Assuming the 90 days trading horizon Jinhe Biotechnology Co is expected to generate 1.28 times more return on investment than Gansu Jiu. However, Jinhe Biotechnology is 1.28 times more volatile than Gansu Jiu Steel. It trades about -0.03 of its potential returns per unit of risk. Gansu Jiu Steel is currently generating about -0.1 per unit of risk. If you would invest 455.00 in Jinhe Biotechnology Co on November 30, 2024 and sell it today you would lose (19.00) from holding Jinhe Biotechnology Co or give up 4.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhe Biotechnology Co vs. Gansu Jiu Steel
Performance |
| Timeline |
| Jinhe Biotechnology |
| Gansu Jiu Steel |
Jinhe Biotechnology and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and Gansu Jiu
The main advantage of trading using opposite Jinhe Biotechnology and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology position performs unexpectedly, Gansu Jiu 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 Gansu Jiu will offset losses from the drop in Gansu Jiu's long position.| Jinhe Biotechnology vs. Ningxia Younglight Chemicals | Jinhe Biotechnology vs. Peoples Insurance of | Jinhe Biotechnology vs. Rising Nonferrous Metals | Jinhe Biotechnology vs. Zhengzhou Coal Mining |
| Gansu Jiu vs. China Sports Industry | Gansu Jiu vs. Lander Sports Development | Gansu Jiu vs. Jiangsu Jinling Sports | Gansu Jiu vs. Suzhou Xingye Material |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |