Correlation Between Konfoong Materials and Jinhe Biotechnology
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By analyzing existing cross correlation between Konfoong Materials International and Jinhe Biotechnology Co, you can compare the effects of market volatilities on Konfoong Materials 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 Konfoong Materials with a short position of Jinhe Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konfoong Materials and Jinhe Biotechnology.
Diversification Opportunities for Konfoong Materials and Jinhe Biotechnology
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Konfoong and Jinhe is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Konfoong Materials Internation and Jinhe Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhe Biotechnology and Konfoong Materials 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 Konfoong Materials International 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 Konfoong Materials i.e., Konfoong Materials and Jinhe Biotechnology go up and down completely randomly.
Pair Corralation between Konfoong Materials and Jinhe Biotechnology
Assuming the 90 days trading horizon Konfoong Materials International is expected to generate 0.53 times more return on investment than Jinhe Biotechnology. However, Konfoong Materials International is 1.88 times less risky than Jinhe Biotechnology. It trades about 0.33 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 6,390 in Konfoong Materials International on November 5, 2024 and sell it today you would earn a total of 639.00 from holding Konfoong Materials International or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Konfoong Materials Internation vs. Jinhe Biotechnology Co
Performance |
| Timeline |
| Konfoong Materials |
| Jinhe Biotechnology |
Konfoong Materials and Jinhe Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konfoong Materials and Jinhe Biotechnology
The main advantage of trading using opposite Konfoong Materials and Jinhe Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konfoong Materials 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.| Konfoong Materials vs. Lecron Energy Saving | Konfoong Materials vs. Xinjiang Beixin RoadBridge | Konfoong Materials vs. Qilu Bank Co | Konfoong Materials vs. Agricultural Bank of |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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