Correlation Between Shenzhen Bioeasy and Guizhou Chanhen
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By analyzing existing cross correlation between Shenzhen Bioeasy Biotechnology and Guizhou Chanhen Chemical, you can compare the effects of market volatilities on Shenzhen Bioeasy and Guizhou Chanhen 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 Guizhou Chanhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bioeasy and Guizhou Chanhen.
Diversification Opportunities for Shenzhen Bioeasy and Guizhou Chanhen
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shenzhen and Guizhou is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bioeasy Biotechnology and Guizhou Chanhen Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guizhou Chanhen Chemical 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 Guizhou Chanhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guizhou Chanhen Chemical has no effect on the direction of Shenzhen Bioeasy i.e., Shenzhen Bioeasy and Guizhou Chanhen go up and down completely randomly.
Pair Corralation between Shenzhen Bioeasy and Guizhou Chanhen
Assuming the 90 days trading horizon Shenzhen Bioeasy Biotechnology is expected to under-perform the Guizhou Chanhen. In addition to that, Shenzhen Bioeasy is 1.52 times more volatile than Guizhou Chanhen Chemical. It trades about -0.02 of its total potential returns per unit of risk. Guizhou Chanhen Chemical is currently generating about 0.01 per unit of volatility. If you would invest 2,250 in Guizhou Chanhen Chemical on October 29, 2024 and sell it today you would lose (55.00) from holding Guizhou Chanhen Chemical or give up 2.44% 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. Guizhou Chanhen Chemical
Performance |
| Timeline |
| Shenzhen Bioeasy Bio |
| Guizhou Chanhen Chemical |
Shenzhen Bioeasy and Guizhou Chanhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bioeasy and Guizhou Chanhen
The main advantage of trading using opposite Shenzhen Bioeasy and Guizhou Chanhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bioeasy position performs unexpectedly, Guizhou Chanhen 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 Guizhou Chanhen will offset losses from the drop in Guizhou Chanhen's long position.| Shenzhen Bioeasy vs. Thunder Software Technology | Shenzhen Bioeasy vs. Ningbo Construction Co | Shenzhen Bioeasy vs. Linewell Software Co | Shenzhen Bioeasy vs. Jiangsu Hoperun Software |
| Guizhou Chanhen vs. Linzhou Heavy Machinery | Guizhou Chanhen vs. Tjk Machinery Tianjin | Guizhou Chanhen vs. Shanghai Construction Group | Guizhou Chanhen vs. Hubei Geoway Investment |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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