Correlation Between Jafron Biomedical and Bank of China
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By analyzing existing cross correlation between Jafron Biomedical Co and Bank of China, you can compare the effects of market volatilities on Jafron Biomedical and Bank of China 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 Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jafron Biomedical and Bank of China.
Diversification Opportunities for Jafron Biomedical and Bank of China
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jafron and Bank is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Jafron Biomedical Co and Bank of China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of China 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 Bank of China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of China has no effect on the direction of Jafron Biomedical i.e., Jafron Biomedical and Bank of China go up and down completely randomly.
Pair Corralation between Jafron Biomedical and Bank of China
Assuming the 90 days trading horizon Jafron Biomedical is expected to generate 3.68 times less return on investment than Bank of China. In addition to that, Jafron Biomedical is 1.85 times more volatile than Bank of China. It trades about 0.01 of its total potential returns per unit of risk. Bank of China is currently generating about 0.09 per unit of volatility. If you would invest 295.00 in Bank of China on September 13, 2024 and sell it today you would earn a total of 218.00 from holding Bank of China or generate 73.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jafron Biomedical Co vs. Bank of China
Performance |
| Timeline |
| Jafron Biomedical |
| Bank of China |
Jafron Biomedical and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jafron Biomedical and Bank of China
The main advantage of trading using opposite Jafron Biomedical and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jafron Biomedical position performs unexpectedly, Bank of China 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 Bank of China will offset losses from the drop in Bank of China's long position.| Jafron Biomedical vs. Industrial and Commercial | Jafron Biomedical vs. Kweichow Moutai Co | Jafron Biomedical vs. Agricultural Bank of | Jafron Biomedical vs. China Mobile Limited |
| Bank of China vs. AUPU Home Style | Bank of China vs. HaiXin Foods Co | Bank of China vs. JuneYao Dairy Co | Bank of China vs. Zhengzhou Qianweiyangchu Food |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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