Correlation Between Jinhe Biotechnology and Shanghai Bailian
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jinhe Biotechnology Co and Shanghai Bailian Group, you can compare the effects of market volatilities on Jinhe Biotechnology and Shanghai Bailian 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 Shanghai Bailian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Shanghai Bailian.
Diversification Opportunities for Jinhe Biotechnology and Shanghai Bailian
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinhe and Shanghai is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology Co and Shanghai Bailian Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Bailian 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 Shanghai Bailian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Bailian has no effect on the direction of Jinhe Biotechnology i.e., Jinhe Biotechnology and Shanghai Bailian go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Shanghai Bailian
Assuming the 90 days trading horizon Jinhe Biotechnology Co is expected to generate 1.15 times more return on investment than Shanghai Bailian. However, Jinhe Biotechnology is 1.15 times more volatile than Shanghai Bailian Group. It trades about 0.0 of its potential returns per unit of risk. Shanghai Bailian Group is currently generating about -0.01 per unit of risk. If you would invest 511.00 in Jinhe Biotechnology Co on November 28, 2024 and sell it today you would lose (71.00) from holding Jinhe Biotechnology Co or give up 13.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Jinhe Biotechnology Co vs. Shanghai Bailian Group
Performance |
| Timeline |
| Jinhe Biotechnology |
| Shanghai Bailian |
Jinhe Biotechnology and Shanghai Bailian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and Shanghai Bailian
The main advantage of trading using opposite Jinhe Biotechnology and Shanghai Bailian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology position performs unexpectedly, Shanghai Bailian 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 Shanghai Bailian will offset losses from the drop in Shanghai Bailian's long position.The idea behind Jinhe Biotechnology Co and Shanghai Bailian Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Shanghai Bailian vs. Fujian Oriental Silver | Shanghai Bailian vs. Shenzhen Silver Basis | Shanghai Bailian vs. Jinhui Mining Co | Shanghai Bailian vs. Hengkang Medical 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |