Correlation Between Jinhe Biotechnology and Industrial
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By analyzing existing cross correlation between Jinhe Biotechnology Co and Industrial and Commercial, you can compare the effects of market volatilities on Jinhe Biotechnology and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Industrial.
Diversification Opportunities for Jinhe Biotechnology and Industrial
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jinhe and Industrial is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology Co and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Jinhe Biotechnology i.e., Jinhe Biotechnology and Industrial go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Industrial
Assuming the 90 days trading horizon Jinhe Biotechnology Co is not expected to generate positive returns. Moreover, Jinhe Biotechnology is 2.08 times more volatile than Industrial and Commercial. It trades away all of its potential returns to assume current level of volatility. Industrial and Commercial is currently generating about 0.09 per unit of risk. If you would invest 480.00 in Industrial and Commercial on August 29, 2024 and sell it today you would earn a total of 136.00 from holding Industrial and Commercial or generate 28.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhe Biotechnology Co vs. Industrial and Commercial
Performance |
| Timeline |
| Jinhe Biotechnology |
| Industrial and Commercial |
Jinhe Biotechnology and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and Industrial
The main advantage of trading using opposite Jinhe Biotechnology and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.| Jinhe Biotechnology vs. Shenyang Chemical Industry | Jinhe Biotechnology vs. XinJiang GuoTong Pipeline | Jinhe Biotechnology vs. Miracll Chemicals Co | Jinhe Biotechnology vs. Beijing Jiaman Dress |
| Industrial vs. Sinofibers Technology Co | Industrial vs. Saurer Intelligent Technology | Industrial vs. Sinocelltech Group | Industrial vs. Dhc 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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