Correlation Between Jinhe Biotechnology and Bomesc Offshore
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By analyzing existing cross correlation between Jinhe Biotechnology Co and Bomesc Offshore Engineering, you can compare the effects of market volatilities on Jinhe Biotechnology and Bomesc Offshore 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 Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Bomesc Offshore.
Diversification Opportunities for Jinhe Biotechnology and Bomesc Offshore
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jinhe and Bomesc is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology Co and Bomesc Offshore Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bomesc Offshore Engi 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 Bomesc Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bomesc Offshore Engi has no effect on the direction of Jinhe Biotechnology i.e., Jinhe Biotechnology and Bomesc Offshore go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Bomesc Offshore
Assuming the 90 days trading horizon Jinhe Biotechnology Co is expected to generate 0.85 times more return on investment than Bomesc Offshore. However, Jinhe Biotechnology Co is 1.17 times less risky than Bomesc Offshore. It trades about 0.09 of its potential returns per unit of risk. Bomesc Offshore Engineering is currently generating about 0.04 per unit of risk. If you would invest 421.00 in Jinhe Biotechnology Co on August 30, 2024 and sell it today you would earn a total of 29.00 from holding Jinhe Biotechnology Co or generate 6.89% 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. Bomesc Offshore Engineering
Performance |
| Timeline |
| Jinhe Biotechnology |
| Bomesc Offshore Engi |
Jinhe Biotechnology and Bomesc Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and Bomesc Offshore
The main advantage of trading using opposite Jinhe Biotechnology and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology position performs unexpectedly, Bomesc Offshore 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 Bomesc Offshore will offset losses from the drop in Bomesc Offshore's long position.| Jinhe Biotechnology vs. Agricultural Bank of | Jinhe Biotechnology vs. Industrial and Commercial | Jinhe Biotechnology vs. Bank of China | Jinhe Biotechnology vs. PetroChina Co Ltd |
| Bomesc Offshore vs. Zhejiang Kingland Pipeline | Bomesc Offshore vs. Chongqing Changan Automobile | Bomesc Offshore vs. Jiangsu Hoperun Software | Bomesc Offshore vs. Qingdao Citymedia 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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