Correlation Between Jinhe Biotechnology and Suzhou Douson
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By analyzing existing cross correlation between Jinhe Biotechnology Co and Suzhou Douson Drilling, you can compare the effects of market volatilities on Jinhe Biotechnology and Suzhou Douson 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 Suzhou Douson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Suzhou Douson.
Diversification Opportunities for Jinhe Biotechnology and Suzhou Douson
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jinhe and Suzhou is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology Co and Suzhou Douson Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Douson Drilling 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 Suzhou Douson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Douson Drilling has no effect on the direction of Jinhe Biotechnology i.e., Jinhe Biotechnology and Suzhou Douson go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Suzhou Douson
Assuming the 90 days trading horizon Jinhe Biotechnology Co is expected to generate 0.58 times more return on investment than Suzhou Douson. However, Jinhe Biotechnology Co is 1.72 times less risky than Suzhou Douson. It trades about 0.01 of its potential returns per unit of risk. Suzhou Douson Drilling is currently generating about 0.0 per unit of risk. If you would invest 447.00 in Jinhe Biotechnology Co on August 27, 2024 and sell it today you would earn a total of 1.00 from holding Jinhe Biotechnology Co or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhe Biotechnology Co vs. Suzhou Douson Drilling
Performance |
| Timeline |
| Jinhe Biotechnology |
| Suzhou Douson Drilling |
Jinhe Biotechnology and Suzhou Douson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and Suzhou Douson
The main advantage of trading using opposite Jinhe Biotechnology and Suzhou Douson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology position performs unexpectedly, Suzhou Douson 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 Suzhou Douson will offset losses from the drop in Suzhou Douson's long position.| Jinhe Biotechnology vs. Industrial and Commercial | Jinhe Biotechnology vs. Agricultural Bank of | Jinhe Biotechnology vs. China Construction Bank | Jinhe Biotechnology vs. Bank of China |
| Suzhou Douson vs. Dhc Software Co | Suzhou Douson vs. Jinhe Biotechnology Co | Suzhou Douson vs. Changchun UP Optotech | Suzhou Douson vs. Shandong Polymer Biochemicals |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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