Correlation Between Jinhe Biotechnology and BeiGene
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By analyzing existing cross correlation between Jinhe Biotechnology Co and BeiGene, you can compare the effects of market volatilities on Jinhe Biotechnology and BeiGene 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 BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and BeiGene.
Diversification Opportunities for Jinhe Biotechnology and BeiGene
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jinhe and BeiGene is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology Co and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene 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 BeiGene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeiGene has no effect on the direction of Jinhe Biotechnology i.e., Jinhe Biotechnology and BeiGene go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and BeiGene
Assuming the 90 days trading horizon Jinhe Biotechnology Co is expected to under-perform the BeiGene. In addition to that, Jinhe Biotechnology is 1.33 times more volatile than BeiGene. It trades about -0.07 of its total potential returns per unit of risk. BeiGene is currently generating about 0.24 per unit of volatility. If you would invest 16,157 in BeiGene on October 20, 2024 and sell it today you would earn a total of 2,061 from holding BeiGene or generate 12.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhe Biotechnology Co vs. BeiGene
Performance |
| Timeline |
| Jinhe Biotechnology |
| BeiGene |
Jinhe Biotechnology and BeiGene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and BeiGene
The main advantage of trading using opposite Jinhe Biotechnology and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology position performs unexpectedly, BeiGene 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 BeiGene will offset losses from the drop in BeiGene's long position.| Jinhe Biotechnology vs. Shenzhen Clou Electronics | Jinhe Biotechnology vs. Dongfeng Automobile Co | Jinhe Biotechnology vs. Ningbo Fangzheng Automobile | Jinhe Biotechnology vs. Dongguan Tarry Electronics |
| BeiGene vs. Guangzhou Seagull Kitchen | BeiGene vs. Lutian Machinery Co | BeiGene vs. Jinlong Machinery Electronic | BeiGene vs. Shenzhen Noposion Agrochemicals |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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