Correlation Between Shenzhen Bioeasy and Jiangsu Pacific
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By analyzing existing cross correlation between Shenzhen Bioeasy Biotechnology and Jiangsu Pacific Quartz, you can compare the effects of market volatilities on Shenzhen Bioeasy and Jiangsu Pacific 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 Jiangsu Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bioeasy and Jiangsu Pacific.
Diversification Opportunities for Shenzhen Bioeasy and Jiangsu Pacific
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Jiangsu is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bioeasy Biotechnology and Jiangsu Pacific Quartz in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Pacific Quartz 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 Jiangsu Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Pacific Quartz has no effect on the direction of Shenzhen Bioeasy i.e., Shenzhen Bioeasy and Jiangsu Pacific go up and down completely randomly.
Pair Corralation between Shenzhen Bioeasy and Jiangsu Pacific
Assuming the 90 days trading horizon Shenzhen Bioeasy Biotechnology is expected to generate 2.7 times more return on investment than Jiangsu Pacific. However, Shenzhen Bioeasy is 2.7 times more volatile than Jiangsu Pacific Quartz. It trades about 0.11 of its potential returns per unit of risk. Jiangsu Pacific Quartz is currently generating about -0.14 per unit of risk. If you would invest 912.00 in Shenzhen Bioeasy Biotechnology on September 14, 2024 and sell it today you would earn a total of 100.00 from holding Shenzhen Bioeasy Biotechnology or generate 10.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bioeasy Biotechnology vs. Jiangsu Pacific Quartz
Performance |
| Timeline |
| Shenzhen Bioeasy Bio |
| Jiangsu Pacific Quartz |
Shenzhen Bioeasy and Jiangsu Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bioeasy and Jiangsu Pacific
The main advantage of trading using opposite Shenzhen Bioeasy and Jiangsu Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bioeasy position performs unexpectedly, Jiangsu Pacific 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 Jiangsu Pacific will offset losses from the drop in Jiangsu Pacific's long position.| Shenzhen Bioeasy vs. Industrial and Commercial | Shenzhen Bioeasy vs. China Construction Bank | Shenzhen Bioeasy vs. Bank of China | Shenzhen Bioeasy vs. Agricultural Bank of |
| Jiangsu Pacific vs. Xinxiang Chemical Fiber | Jiangsu Pacific vs. Will Semiconductor Co | Jiangsu Pacific vs. GigaDevice SemiconductorBeiji | Jiangsu Pacific vs. Shenyang Chemical Industry |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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