Correlation Between Jinhe Biotechnology and GigaDevice SemiconductorBei
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jinhe Biotechnology Co and GigaDevice SemiconductorBeiji, you can compare the effects of market volatilities on Jinhe Biotechnology and GigaDevice SemiconductorBei 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 GigaDevice SemiconductorBei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and GigaDevice SemiconductorBei.
Diversification Opportunities for Jinhe Biotechnology and GigaDevice SemiconductorBei
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jinhe and GigaDevice is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology Co and GigaDevice SemiconductorBeiji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaDevice SemiconductorBei 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 GigaDevice SemiconductorBei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GigaDevice SemiconductorBei has no effect on the direction of Jinhe Biotechnology i.e., Jinhe Biotechnology and GigaDevice SemiconductorBei go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and GigaDevice SemiconductorBei
Assuming the 90 days trading horizon Jinhe Biotechnology Co is expected to generate 0.8 times more return on investment than GigaDevice SemiconductorBei. However, Jinhe Biotechnology Co is 1.25 times less risky than GigaDevice SemiconductorBei. It trades about 0.01 of its potential returns per unit of risk. GigaDevice SemiconductorBeiji is currently generating about -0.01 per unit of risk. If you would invest 461.00 in Jinhe Biotechnology Co on August 28, 2024 and sell it today you would lose (13.00) from holding Jinhe Biotechnology Co or give up 2.82% 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. GigaDevice SemiconductorBeiji
Performance |
| Timeline |
| Jinhe Biotechnology |
| GigaDevice SemiconductorBei |
Jinhe Biotechnology and GigaDevice SemiconductorBei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and GigaDevice SemiconductorBei
The main advantage of trading using opposite Jinhe Biotechnology and GigaDevice SemiconductorBei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology position performs unexpectedly, GigaDevice SemiconductorBei 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 GigaDevice SemiconductorBei will offset losses from the drop in GigaDevice SemiconductorBei'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 |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |