Correlation Between Shenzhen Bioeasy and China Reform
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By analyzing existing cross correlation between Shenzhen Bioeasy Biotechnology and China Reform Health, you can compare the effects of market volatilities on Shenzhen Bioeasy and China Reform 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 Shenzhen Bioeasy with a short position of China Reform. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bioeasy and China Reform.
Diversification Opportunities for Shenzhen Bioeasy and China Reform
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenzhen and China is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bioeasy Biotechnology and China Reform Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Reform Health and Shenzhen Bioeasy 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 Shenzhen Bioeasy Biotechnology are associated (or correlated) with China Reform. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Reform Health has no effect on the direction of Shenzhen Bioeasy i.e., Shenzhen Bioeasy and China Reform go up and down completely randomly.
Pair Corralation between Shenzhen Bioeasy and China Reform
Assuming the 90 days trading horizon Shenzhen Bioeasy Biotechnology is expected to under-perform the China Reform. In addition to that, Shenzhen Bioeasy is 1.19 times more volatile than China Reform Health. It trades about -0.01 of its total potential returns per unit of risk. China Reform Health is currently generating about 0.0 per unit of volatility. If you would invest 1,185 in China Reform Health on October 16, 2024 and sell it today you would lose (188.00) from holding China Reform Health or give up 15.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bioeasy Biotechnology vs. China Reform Health
Performance |
| Timeline |
| Shenzhen Bioeasy Bio |
| China Reform Health |
Shenzhen Bioeasy and China Reform Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bioeasy and China Reform
The main advantage of trading using opposite Shenzhen Bioeasy and China Reform positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bioeasy position performs unexpectedly, China Reform 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 China Reform will offset losses from the drop in China Reform's long position.| Shenzhen Bioeasy vs. Shandong Longda Meat | Shenzhen Bioeasy vs. Guilin Seamild Foods | Shenzhen Bioeasy vs. Juewei Food Co | Shenzhen Bioeasy vs. JuneYao Dairy Co |
| China Reform vs. Agricultural Bank of | China Reform vs. Unisplendour Corp | China Reform vs. Financial Street Holdings | China Reform vs. Shenzhen Bioeasy Biotechnology |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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