Correlation Between Shenzhen Bioeasy and Fujian Wanchen
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By analyzing existing cross correlation between Shenzhen Bioeasy Biotechnology and Fujian Wanchen Biotechnology, you can compare the effects of market volatilities on Shenzhen Bioeasy and Fujian Wanchen 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 Fujian Wanchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bioeasy and Fujian Wanchen.
Diversification Opportunities for Shenzhen Bioeasy and Fujian Wanchen
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and Fujian is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bioeasy Biotechnology and Fujian Wanchen Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Wanchen Biote 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 Fujian Wanchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Wanchen Biote has no effect on the direction of Shenzhen Bioeasy i.e., Shenzhen Bioeasy and Fujian Wanchen go up and down completely randomly.
Pair Corralation between Shenzhen Bioeasy and Fujian Wanchen
Assuming the 90 days trading horizon Shenzhen Bioeasy Biotechnology is expected to under-perform the Fujian Wanchen. In addition to that, Shenzhen Bioeasy is 1.23 times more volatile than Fujian Wanchen Biotechnology. It trades about -0.14 of its total potential returns per unit of risk. Fujian Wanchen Biotechnology is currently generating about 0.4 per unit of volatility. If you would invest 7,134 in Fujian Wanchen Biotechnology on October 20, 2024 and sell it today you would earn a total of 1,917 from holding Fujian Wanchen Biotechnology or generate 26.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bioeasy Biotechnology vs. Fujian Wanchen Biotechnology
Performance |
| Timeline |
| Shenzhen Bioeasy Bio |
| Fujian Wanchen Biote |
Shenzhen Bioeasy and Fujian Wanchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bioeasy and Fujian Wanchen
The main advantage of trading using opposite Shenzhen Bioeasy and Fujian Wanchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bioeasy position performs unexpectedly, Fujian Wanchen 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 Fujian Wanchen will offset losses from the drop in Fujian Wanchen's long position.| Shenzhen Bioeasy vs. Liaoning Dingjide Petrochemical | Shenzhen Bioeasy vs. HeNan Splendor Science | Shenzhen Bioeasy vs. Industrial Bank Co | Shenzhen Bioeasy vs. Shenwu Energy Saving |
| Fujian Wanchen vs. GigaDevice SemiconductorBeiji | Fujian Wanchen vs. Ningxia Younglight Chemicals | Fujian Wanchen vs. Kidswant Children Products | Fujian Wanchen vs. Lianhe Chemical Technology |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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