Correlation Between Jinhe Biotechnology and Zhende Medical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jinhe Biotechnology Co and Zhende Medical Co, you can compare the effects of market volatilities on Jinhe Biotechnology and Zhende Medical 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 Zhende Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Zhende Medical.
Diversification Opportunities for Jinhe Biotechnology and Zhende Medical
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jinhe and Zhende is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology Co and Zhende Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhende Medical 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 Zhende Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhende Medical has no effect on the direction of Jinhe Biotechnology i.e., Jinhe Biotechnology and Zhende Medical go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Zhende Medical
Assuming the 90 days trading horizon Jinhe Biotechnology Co is expected to generate 1.35 times more return on investment than Zhende Medical. However, Jinhe Biotechnology is 1.35 times more volatile than Zhende Medical Co. It trades about 0.04 of its potential returns per unit of risk. Zhende Medical Co is currently generating about -0.05 per unit of risk. If you would invest 447.00 in Jinhe Biotechnology Co on August 29, 2024 and sell it today you would earn a total of 5.00 from holding Jinhe Biotechnology Co or generate 1.12% 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. Zhende Medical Co
Performance |
| Timeline |
| Jinhe Biotechnology |
| Zhende Medical |
Jinhe Biotechnology and Zhende Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and Zhende Medical
The main advantage of trading using opposite Jinhe Biotechnology and Zhende Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology position performs unexpectedly, Zhende Medical 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 Zhende Medical will offset losses from the drop in Zhende Medical's long position.| Jinhe Biotechnology vs. JCHX Mining Management | Jinhe Biotechnology vs. Xinjiang Baodi Mining | Jinhe Biotechnology vs. Gansu Huangtai Wine marketing | Jinhe Biotechnology vs. Harbin Air Conditioning |
| Zhende Medical vs. Bank of China | Zhende Medical vs. Kweichow Moutai Co | Zhende Medical vs. PetroChina Co Ltd | Zhende Medical vs. Bank of Communications |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |