Correlation Between Ningbo MedicalSystem and Jinhe Biotechnology
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By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and Jinhe Biotechnology Co, you can compare the effects of market volatilities on Ningbo MedicalSystem 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 Ningbo MedicalSystem with a short position of Jinhe Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and Jinhe Biotechnology.
Diversification Opportunities for Ningbo MedicalSystem and Jinhe Biotechnology
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and Jinhe is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and Jinhe Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhe Biotechnology and Ningbo MedicalSystem 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 Ningbo MedicalSystem Biotechnology 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 Ningbo MedicalSystem i.e., Ningbo MedicalSystem and Jinhe Biotechnology go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and Jinhe Biotechnology
Assuming the 90 days trading horizon Ningbo MedicalSystem Biotechnology is expected to generate 1.45 times more return on investment than Jinhe Biotechnology. However, Ningbo MedicalSystem is 1.45 times more volatile than Jinhe Biotechnology Co. It trades about 0.16 of its potential returns per unit of risk. Jinhe Biotechnology Co is currently generating about 0.18 per unit of risk. If you would invest 1,082 in Ningbo MedicalSystem Biotechnology on September 4, 2024 and sell it today you would earn a total of 95.00 from holding Ningbo MedicalSystem Biotechnology or generate 8.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo MedicalSystem Biotechno vs. Jinhe Biotechnology Co
Performance |
| Timeline |
| Ningbo MedicalSystem |
| Jinhe Biotechnology |
Ningbo MedicalSystem and Jinhe Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo MedicalSystem and Jinhe Biotechnology
The main advantage of trading using opposite Ningbo MedicalSystem and Jinhe Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem 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.| Ningbo MedicalSystem vs. Kweichow Moutai Co | Ningbo MedicalSystem vs. Shenzhen Mindray Bio Medical | Ningbo MedicalSystem vs. Jiangsu Pacific Quartz | Ningbo MedicalSystem vs. G bits Network Technology |
| Jinhe Biotechnology vs. Sichuan Fulin Transportation | Jinhe Biotechnology vs. Fujian Longzhou Transportation | Jinhe Biotechnology vs. Hunan TV Broadcast | Jinhe Biotechnology vs. Spring Airlines 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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