Correlation Between Jinhe Biotechnology and Leaguer Shenzhen
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By analyzing existing cross correlation between Jinhe Biotechnology Co and Leaguer Shenzhen MicroElectronics, you can compare the effects of market volatilities on Jinhe Biotechnology and Leaguer Shenzhen 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 Leaguer Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Leaguer Shenzhen.
Diversification Opportunities for Jinhe Biotechnology and Leaguer Shenzhen
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jinhe and Leaguer is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology Co and Leaguer Shenzhen MicroElectron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leaguer Shenzhen Mic 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 Leaguer Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leaguer Shenzhen Mic has no effect on the direction of Jinhe Biotechnology i.e., Jinhe Biotechnology and Leaguer Shenzhen go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Leaguer Shenzhen
Assuming the 90 days trading horizon Jinhe Biotechnology is expected to generate 5.27 times less return on investment than Leaguer Shenzhen. But when comparing it to its historical volatility, Jinhe Biotechnology Co is 1.57 times less risky than Leaguer Shenzhen. It trades about 0.01 of its potential returns per unit of risk. Leaguer Shenzhen MicroElectronics is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,779 in Leaguer Shenzhen MicroElectronics on September 12, 2024 and sell it today you would earn a total of 121.00 from holding Leaguer Shenzhen MicroElectronics or generate 4.35% 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. Leaguer Shenzhen MicroElectron
Performance |
| Timeline |
| Jinhe Biotechnology |
| Leaguer Shenzhen Mic |
Jinhe Biotechnology and Leaguer Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and Leaguer Shenzhen
The main advantage of trading using opposite Jinhe Biotechnology and Leaguer Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology position performs unexpectedly, Leaguer Shenzhen 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 Leaguer Shenzhen will offset losses from the drop in Leaguer Shenzhen's long position.| Jinhe Biotechnology vs. Cultural Investment Holdings | Jinhe Biotechnology vs. Gome Telecom Equipment | Jinhe Biotechnology vs. Holitech Technology Co | Jinhe Biotechnology vs. Zotye Automobile Co |
| Leaguer Shenzhen vs. Gansu Jiu Steel | Leaguer Shenzhen vs. Shandong Mining Machinery | Leaguer Shenzhen vs. Aba Chemicals Corp | Leaguer Shenzhen vs. BlueFocus Communication Group |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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