Correlation Between Zhejiang Construction and Jinhe Biotechnology
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By analyzing existing cross correlation between Zhejiang Construction Investment and Jinhe Biotechnology Co, you can compare the effects of market volatilities on Zhejiang Construction and Jinhe Biotechnology 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 Zhejiang Construction with a short position of Jinhe Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Construction and Jinhe Biotechnology.
Diversification Opportunities for Zhejiang Construction and Jinhe Biotechnology
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and Jinhe is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Construction Investme and Jinhe Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhe Biotechnology and Zhejiang Construction 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 Zhejiang Construction Investment are associated (or correlated) with Jinhe Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhe Biotechnology has no effect on the direction of Zhejiang Construction i.e., Zhejiang Construction and Jinhe Biotechnology go up and down completely randomly.
Pair Corralation between Zhejiang Construction and Jinhe Biotechnology
Assuming the 90 days trading horizon Zhejiang Construction Investment is expected to under-perform the Jinhe Biotechnology. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Construction Investment is 1.77 times less risky than Jinhe Biotechnology. The stock trades about -0.37 of its potential returns per unit of risk. The Jinhe Biotechnology Co is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 452.00 in Jinhe Biotechnology Co on October 25, 2024 and sell it today you would lose (16.00) from holding Jinhe Biotechnology Co or give up 3.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Construction Investme vs. Jinhe Biotechnology Co
Performance |
| Timeline |
| Zhejiang Construction |
| Jinhe Biotechnology |
Zhejiang Construction and Jinhe Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Construction and Jinhe Biotechnology
The main advantage of trading using opposite Zhejiang Construction and Jinhe Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Construction position performs unexpectedly, Jinhe Biotechnology 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 Jinhe Biotechnology will offset losses from the drop in Jinhe Biotechnology's long position.| Zhejiang Construction vs. Dareway Software Co | Zhejiang Construction vs. Impulse Qingdao Health | Zhejiang Construction vs. Hangzhou Pinming Software | Zhejiang Construction vs. Youngy Health Co |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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