Correlation Between Beijing Jiaman and Jinhe Biotechnology
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By analyzing existing cross correlation between Beijing Jiaman Dress and Jinhe Biotechnology Co, you can compare the effects of market volatilities on Beijing Jiaman and Jinhe Biotechnology 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 Beijing Jiaman with a short position of Jinhe Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Jiaman and Jinhe Biotechnology.
Diversification Opportunities for Beijing Jiaman and Jinhe Biotechnology
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Jinhe is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Jiaman Dress and Jinhe Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhe Biotechnology and Beijing Jiaman 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 Beijing Jiaman Dress are associated (or correlated) with Jinhe Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhe Biotechnology has no effect on the direction of Beijing Jiaman i.e., Beijing Jiaman and Jinhe Biotechnology go up and down completely randomly.
Pair Corralation between Beijing Jiaman and Jinhe Biotechnology
Assuming the 90 days trading horizon Beijing Jiaman Dress is expected to under-perform the Jinhe Biotechnology. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Jiaman Dress is 1.08 times less risky than Jinhe Biotechnology. The stock trades about -0.01 of its potential returns per unit of risk. The Jinhe Biotechnology Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 479.00 in Jinhe Biotechnology Co on September 1, 2024 and sell it today you would lose (20.00) from holding Jinhe Biotechnology Co or give up 4.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Jiaman Dress vs. Jinhe Biotechnology Co
Performance |
| Timeline |
| Beijing Jiaman Dress |
| Jinhe Biotechnology |
Beijing Jiaman and Jinhe Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Jiaman and Jinhe Biotechnology
The main advantage of trading using opposite Beijing Jiaman and Jinhe Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Jiaman position performs unexpectedly, Jinhe Biotechnology 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 Jinhe Biotechnology will offset losses from the drop in Jinhe Biotechnology's long position.| Beijing Jiaman vs. Chongqing Shunbo Aluminum | Beijing Jiaman vs. Beijing Kaiwen Education | Beijing Jiaman vs. Lander Sports Development | Beijing Jiaman vs. Anhui Transport Consulting |
| Jinhe Biotechnology vs. Hunan TV Broadcast | Jinhe Biotechnology vs. Anhui Transport Consulting | Jinhe Biotechnology vs. Dazhong Transportation Group | Jinhe Biotechnology vs. Yangmei Chemical Co |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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