Correlation Between Jiangsu Xinning and Jinhe Biotechnology
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By analyzing existing cross correlation between Jiangsu Xinning Modern and Jinhe Biotechnology Co, you can compare the effects of market volatilities on Jiangsu Xinning 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 Jiangsu Xinning with a short position of Jinhe Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinning and Jinhe Biotechnology.
Diversification Opportunities for Jiangsu Xinning and Jinhe Biotechnology
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Jinhe is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinning Modern and Jinhe Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhe Biotechnology and Jiangsu Xinning 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 Jiangsu Xinning Modern 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 Jiangsu Xinning i.e., Jiangsu Xinning and Jinhe Biotechnology go up and down completely randomly.
Pair Corralation between Jiangsu Xinning and Jinhe Biotechnology
Assuming the 90 days trading horizon Jiangsu Xinning Modern is expected to generate 1.93 times more return on investment than Jinhe Biotechnology. However, Jiangsu Xinning is 1.93 times more volatile than Jinhe Biotechnology Co. It trades about 0.0 of its potential returns per unit of risk. Jinhe Biotechnology Co is currently generating about -0.01 per unit of risk. If you would invest 570.00 in Jiangsu Xinning Modern on August 28, 2024 and sell it today you would lose (164.00) from holding Jiangsu Xinning Modern or give up 28.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Xinning Modern vs. Jinhe Biotechnology Co
Performance |
| Timeline |
| Jiangsu Xinning Modern |
| Jinhe Biotechnology |
Jiangsu Xinning and Jinhe Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Xinning and Jinhe Biotechnology
The main advantage of trading using opposite Jiangsu Xinning and Jinhe Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinning 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.| Jiangsu Xinning vs. North Huajin Chemical | Jiangsu Xinning vs. Miracll Chemicals Co | Jiangsu Xinning vs. Shandong Ruifeng Chemical | Jiangsu Xinning vs. Guangzhou Jointas Chemical |
| Jinhe Biotechnology vs. Industrial and Commercial | Jinhe Biotechnology vs. Agricultural Bank of | Jinhe Biotechnology vs. China Construction Bank | Jinhe Biotechnology vs. Bank of China |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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