Correlation Between Shenzhen Bioeasy and HOB Biotech
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By analyzing existing cross correlation between Shenzhen Bioeasy Biotechnology and HOB Biotech Group, you can compare the effects of market volatilities on Shenzhen Bioeasy and HOB Biotech 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 HOB Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bioeasy and HOB Biotech.
Diversification Opportunities for Shenzhen Bioeasy and HOB Biotech
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and HOB is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bioeasy Biotechnology and HOB Biotech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOB Biotech Group 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 HOB Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOB Biotech Group has no effect on the direction of Shenzhen Bioeasy i.e., Shenzhen Bioeasy and HOB Biotech go up and down completely randomly.
Pair Corralation between Shenzhen Bioeasy and HOB Biotech
Assuming the 90 days trading horizon Shenzhen Bioeasy Biotechnology is expected to generate 0.88 times more return on investment than HOB Biotech. However, Shenzhen Bioeasy Biotechnology is 1.13 times less risky than HOB Biotech. It trades about -0.04 of its potential returns per unit of risk. HOB Biotech Group is currently generating about -0.09 per unit of risk. If you would invest 925.00 in Shenzhen Bioeasy Biotechnology on October 11, 2024 and sell it today you would lose (100.00) from holding Shenzhen Bioeasy Biotechnology or give up 10.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bioeasy Biotechnology vs. HOB Biotech Group
Performance |
| Timeline |
| Shenzhen Bioeasy Bio |
| HOB Biotech Group |
Shenzhen Bioeasy and HOB Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bioeasy and HOB Biotech
The main advantage of trading using opposite Shenzhen Bioeasy and HOB Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bioeasy position performs unexpectedly, HOB Biotech 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 HOB Biotech will offset losses from the drop in HOB Biotech's long position.| Shenzhen Bioeasy vs. GUOMAI Culture Media | Shenzhen Bioeasy vs. China Publishing Media | Shenzhen Bioeasy vs. Guangzhou Jinyi Media | Shenzhen Bioeasy vs. JiShi Media Co |
| HOB Biotech vs. Shannon Semiconductor Technology | HOB Biotech vs. ZYF Lopsking Aluminum | HOB Biotech vs. Suzhou Oriental Semiconductor | HOB Biotech vs. Guangdong Jingyi Metal |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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