Correlation Between Shanghai Phichem and Jinhe Biotechnology
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By analyzing existing cross correlation between Shanghai Phichem Material and Jinhe Biotechnology Co, you can compare the effects of market volatilities on Shanghai Phichem 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 Shanghai Phichem with a short position of Jinhe Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Phichem and Jinhe Biotechnology.
Diversification Opportunities for Shanghai Phichem and Jinhe Biotechnology
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Jinhe is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Phichem Material and Jinhe Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhe Biotechnology and Shanghai Phichem 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 Shanghai Phichem Material 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 Shanghai Phichem i.e., Shanghai Phichem and Jinhe Biotechnology go up and down completely randomly.
Pair Corralation between Shanghai Phichem and Jinhe Biotechnology
Assuming the 90 days trading horizon Shanghai Phichem Material is expected to generate 0.53 times more return on investment than Jinhe Biotechnology. However, Shanghai Phichem Material is 1.88 times less risky than Jinhe Biotechnology. It trades about 0.26 of its potential returns per unit of risk. Jinhe Biotechnology Co is currently generating about 0.05 per unit of risk. If you would invest 1,470 in Shanghai Phichem Material on November 5, 2024 and sell it today you would earn a total of 115.00 from holding Shanghai Phichem Material or generate 7.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Phichem Material vs. Jinhe Biotechnology Co
Performance |
| Timeline |
| Shanghai Phichem Material |
| Jinhe Biotechnology |
Shanghai Phichem and Jinhe Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Phichem and Jinhe Biotechnology
The main advantage of trading using opposite Shanghai Phichem and Jinhe Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Phichem 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.| Shanghai Phichem vs. Fibocom Wireless | Shanghai Phichem vs. Shanghai V Test Semiconductor | Shanghai Phichem vs. Bank of Communications | Shanghai Phichem vs. Thinkon Semiconductor Jinzhou |
| Jinhe Biotechnology vs. Maxvision Technology Corp | Jinhe Biotechnology vs. ROPEOK Technology Group | Jinhe Biotechnology vs. Smartgiant Technology Co | Jinhe Biotechnology vs. Montage Technology 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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