Correlation Between Shenzhen Bioeasy and Jinhe Biotechnology
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By analyzing existing cross correlation between Shenzhen Bioeasy Biotechnology and Jinhe Biotechnology Co, you can compare the effects of market volatilities on Shenzhen Bioeasy 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 Shenzhen Bioeasy with a short position of Jinhe Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bioeasy and Jinhe Biotechnology.
Diversification Opportunities for Shenzhen Bioeasy and Jinhe Biotechnology
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Jinhe is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bioeasy Biotechnology and Jinhe Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhe Biotechnology 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 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 Shenzhen Bioeasy i.e., Shenzhen Bioeasy and Jinhe Biotechnology go up and down completely randomly.
Pair Corralation between Shenzhen Bioeasy and Jinhe Biotechnology
Assuming the 90 days trading horizon Shenzhen Bioeasy Biotechnology is expected to generate 2.68 times more return on investment than Jinhe Biotechnology. However, Shenzhen Bioeasy is 2.68 times more volatile than Jinhe Biotechnology Co. It trades about 0.17 of its potential returns per unit of risk. Jinhe Biotechnology Co is currently generating about 0.04 per unit of risk. If you would invest 888.00 in Shenzhen Bioeasy Biotechnology on August 29, 2024 and sell it today you would earn a total of 167.00 from holding Shenzhen Bioeasy Biotechnology or generate 18.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bioeasy Biotechnology vs. Jinhe Biotechnology Co
Performance |
| Timeline |
| Shenzhen Bioeasy Bio |
| Jinhe Biotechnology |
Shenzhen Bioeasy and Jinhe Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bioeasy and Jinhe Biotechnology
The main advantage of trading using opposite Shenzhen Bioeasy and Jinhe Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bioeasy 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.| Shenzhen Bioeasy vs. Industrial and Commercial | Shenzhen Bioeasy vs. China Construction Bank | Shenzhen Bioeasy vs. Agricultural Bank of | Shenzhen Bioeasy vs. Bank of China |
| Jinhe Biotechnology vs. JCHX Mining Management | Jinhe Biotechnology vs. Xinjiang Baodi Mining | Jinhe Biotechnology vs. Gansu Huangtai Wine marketing | Jinhe Biotechnology vs. Harbin Air Conditioning |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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