Correlation Between Jafron Biomedical and Beijing Wandong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jafron Biomedical Co and Beijing Wandong Medical, you can compare the effects of market volatilities on Jafron Biomedical and Beijing Wandong 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 Jafron Biomedical with a short position of Beijing Wandong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jafron Biomedical and Beijing Wandong.
Diversification Opportunities for Jafron Biomedical and Beijing Wandong
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jafron and Beijing is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Jafron Biomedical Co and Beijing Wandong Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wandong Medical and Jafron Biomedical 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 Jafron Biomedical Co are associated (or correlated) with Beijing Wandong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wandong Medical has no effect on the direction of Jafron Biomedical i.e., Jafron Biomedical and Beijing Wandong go up and down completely randomly.
Pair Corralation between Jafron Biomedical and Beijing Wandong
Assuming the 90 days trading horizon Jafron Biomedical Co is expected to under-perform the Beijing Wandong. But the stock apears to be less risky and, when comparing its historical volatility, Jafron Biomedical Co is 1.33 times less risky than Beijing Wandong. The stock trades about -0.13 of its potential returns per unit of risk. The Beijing Wandong Medical is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,497 in Beijing Wandong Medical on August 29, 2024 and sell it today you would earn a total of 246.00 from holding Beijing Wandong Medical or generate 16.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jafron Biomedical Co vs. Beijing Wandong Medical
Performance |
| Timeline |
| Jafron Biomedical |
| Beijing Wandong Medical |
Jafron Biomedical and Beijing Wandong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jafron Biomedical and Beijing Wandong
The main advantage of trading using opposite Jafron Biomedical and Beijing Wandong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jafron Biomedical position performs unexpectedly, Beijing Wandong 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 Beijing Wandong will offset losses from the drop in Beijing Wandong's long position.| Jafron Biomedical vs. Industrial and Commercial | Jafron Biomedical vs. China Construction Bank | Jafron Biomedical vs. Agricultural Bank of | Jafron Biomedical vs. Bank of China |
| Beijing Wandong vs. Sunwave Communications Co | Beijing Wandong vs. Hubei Xingfa Chemicals | Beijing Wandong vs. Shandong Polymer Biochemicals | Beijing Wandong vs. 360 Security Technology |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |