Correlation Between Jinhe Biotechnology and Jiangsu Bioperfectus
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By analyzing existing cross correlation between Jinhe Biotechnology Co and Jiangsu Bioperfectus Technologies, you can compare the effects of market volatilities on Jinhe Biotechnology and Jiangsu Bioperfectus 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 Jiangsu Bioperfectus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Jiangsu Bioperfectus.
Diversification Opportunities for Jinhe Biotechnology and Jiangsu Bioperfectus
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jinhe and Jiangsu is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology Co and Jiangsu Bioperfectus Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Bioperfectus 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 Jiangsu Bioperfectus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Bioperfectus has no effect on the direction of Jinhe Biotechnology i.e., Jinhe Biotechnology and Jiangsu Bioperfectus go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Jiangsu Bioperfectus
Assuming the 90 days trading horizon Jinhe Biotechnology Co is expected to generate 0.66 times more return on investment than Jiangsu Bioperfectus. However, Jinhe Biotechnology Co is 1.52 times less risky than Jiangsu Bioperfectus. It trades about 0.13 of its potential returns per unit of risk. Jiangsu Bioperfectus Technologies is currently generating about -0.25 per unit of risk. If you would invest 439.00 in Jinhe Biotechnology Co on September 3, 2024 and sell it today you would earn a total of 20.00 from holding Jinhe Biotechnology Co or generate 4.56% 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. Jiangsu Bioperfectus Technolog
Performance |
| Timeline |
| Jinhe Biotechnology |
| Jiangsu Bioperfectus |
Jinhe Biotechnology and Jiangsu Bioperfectus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and Jiangsu Bioperfectus
The main advantage of trading using opposite Jinhe Biotechnology and Jiangsu Bioperfectus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology position performs unexpectedly, Jiangsu Bioperfectus 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 Jiangsu Bioperfectus will offset losses from the drop in Jiangsu Bioperfectus' long position.| Jinhe Biotechnology vs. Chengdu Kanghua Biological | Jinhe Biotechnology vs. Beijing Wantai Biological | Jinhe Biotechnology vs. Suzhou Novoprotein Scientific | Jinhe Biotechnology vs. Aluminum Corp of |
| Jiangsu Bioperfectus vs. China Railway Materials | Jiangsu Bioperfectus vs. Zhongshan Public Utilities | Jiangsu Bioperfectus vs. Guangdong Wens Foodstuff | Jiangsu Bioperfectus vs. Shanghai Ziyan Foods |
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.
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