Correlation Between Jinhe Biotechnology and Anhui Transport
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jinhe Biotechnology Co and Anhui Transport Consulting, you can compare the effects of market volatilities on Jinhe Biotechnology and Anhui Transport 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 Anhui Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Anhui Transport.
Diversification Opportunities for Jinhe Biotechnology and Anhui Transport
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Jinhe and Anhui is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology Co and Anhui Transport Consulting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Transport Cons 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 Anhui Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Transport Cons has no effect on the direction of Jinhe Biotechnology i.e., Jinhe Biotechnology and Anhui Transport go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Anhui Transport
Assuming the 90 days trading horizon Jinhe Biotechnology Co is expected to generate 0.87 times more return on investment than Anhui Transport. However, Jinhe Biotechnology Co is 1.15 times less risky than Anhui Transport. It trades about 0.01 of its potential returns per unit of risk. Anhui Transport Consulting is currently generating about 0.0 per unit of risk. If you would invest 471.00 in Jinhe Biotechnology Co on August 31, 2024 and sell it today you would lose (12.00) from holding Jinhe Biotechnology Co or give up 2.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhe Biotechnology Co vs. Anhui Transport Consulting
Performance |
| Timeline |
| Jinhe Biotechnology |
| Anhui Transport Cons |
Jinhe Biotechnology and Anhui Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and Anhui Transport
The main advantage of trading using opposite Jinhe Biotechnology and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology position performs unexpectedly, Anhui Transport 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 Anhui Transport will offset losses from the drop in Anhui Transport's long position.| Jinhe Biotechnology vs. PetroChina Co Ltd | Jinhe Biotechnology vs. China Mobile Limited | Jinhe Biotechnology vs. Ping An Insurance | Jinhe Biotechnology vs. China Petroleum Chemical |
| Anhui Transport vs. Cultural Investment Holdings | Anhui Transport vs. Gome Telecom Equipment | Anhui Transport vs. Bus Online Co | Anhui Transport vs. Holitech Technology 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |