Correlation Between Shenzhen Bioeasy and HeBei Jinniu
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By analyzing existing cross correlation between Shenzhen Bioeasy Biotechnology and HeBei Jinniu Chemical, you can compare the effects of market volatilities on Shenzhen Bioeasy and HeBei Jinniu 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 HeBei Jinniu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bioeasy and HeBei Jinniu.
Diversification Opportunities for Shenzhen Bioeasy and HeBei Jinniu
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and HeBei is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bioeasy Biotechnology and HeBei Jinniu Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeBei Jinniu 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 HeBei Jinniu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeBei Jinniu Chemical has no effect on the direction of Shenzhen Bioeasy i.e., Shenzhen Bioeasy and HeBei Jinniu go up and down completely randomly.
Pair Corralation between Shenzhen Bioeasy and HeBei Jinniu
Assuming the 90 days trading horizon Shenzhen Bioeasy Biotechnology is expected to under-perform the HeBei Jinniu. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Bioeasy Biotechnology is 1.06 times less risky than HeBei Jinniu. The stock trades about -0.13 of its potential returns per unit of risk. The HeBei Jinniu Chemical is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 530.00 in HeBei Jinniu Chemical on October 18, 2024 and sell it today you would earn a total of 28.00 from holding HeBei Jinniu Chemical or generate 5.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bioeasy Biotechnology vs. HeBei Jinniu Chemical
Performance |
| Timeline |
| Shenzhen Bioeasy Bio |
| HeBei Jinniu Chemical |
Shenzhen Bioeasy and HeBei Jinniu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bioeasy and HeBei Jinniu
The main advantage of trading using opposite Shenzhen Bioeasy and HeBei Jinniu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bioeasy position performs unexpectedly, HeBei Jinniu 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 HeBei Jinniu will offset losses from the drop in HeBei Jinniu's long position.| Shenzhen Bioeasy vs. Wuhan Hvsen Biotechnology | Shenzhen Bioeasy vs. Fuzhou Rockchip Electronics | Shenzhen Bioeasy vs. Shandong Sanyuan Biotechnology | Shenzhen Bioeasy vs. Jiangsu GDK Biotechnology |
| HeBei Jinniu vs. Chengdu Xingrong Investment | HeBei Jinniu vs. Chengdu Xinzhu RoadBridge | HeBei Jinniu vs. Hainan Haiqi Transportation | HeBei Jinniu vs. Jointo Energy 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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