Correlation Between Jinhe Biotechnology and CareRay Digital
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By analyzing existing cross correlation between Jinhe Biotechnology Co and CareRay Digital Medical, you can compare the effects of market volatilities on Jinhe Biotechnology and CareRay Digital 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 CareRay Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and CareRay Digital.
Diversification Opportunities for Jinhe Biotechnology and CareRay Digital
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jinhe and CareRay is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology Co and CareRay Digital Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CareRay Digital Medical 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 CareRay Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CareRay Digital Medical has no effect on the direction of Jinhe Biotechnology i.e., Jinhe Biotechnology and CareRay Digital go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and CareRay Digital
Assuming the 90 days trading horizon Jinhe Biotechnology is expected to generate 2.28 times less return on investment than CareRay Digital. But when comparing it to its historical volatility, Jinhe Biotechnology Co is 1.51 times less risky than CareRay Digital. It trades about 0.04 of its potential returns per unit of risk. CareRay Digital Medical is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,445 in CareRay Digital Medical on August 29, 2024 and sell it today you would earn a total of 37.00 from holding CareRay Digital Medical or generate 2.56% 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. CareRay Digital Medical
Performance |
| Timeline |
| Jinhe Biotechnology |
| CareRay Digital Medical |
Jinhe Biotechnology and CareRay Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and CareRay Digital
The main advantage of trading using opposite Jinhe Biotechnology and CareRay Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology position performs unexpectedly, CareRay Digital 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 CareRay Digital will offset losses from the drop in CareRay Digital'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 |
| CareRay Digital vs. Bank of China | CareRay Digital vs. Kweichow Moutai Co | CareRay Digital vs. PetroChina Co Ltd | CareRay Digital vs. Bank of Communications |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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