Correlation Between Shanghai Pudong and Jinyu Bio
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By analyzing existing cross correlation between Shanghai Pudong Development and Jinyu Bio Technology Co, you can compare the effects of market volatilities on Shanghai Pudong and Jinyu Bio 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 Shanghai Pudong with a short position of Jinyu Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Pudong and Jinyu Bio.
Diversification Opportunities for Shanghai Pudong and Jinyu Bio
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shanghai and Jinyu is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Pudong Development and Jinyu Bio Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinyu Bio Technology and Shanghai Pudong 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 Shanghai Pudong Development are associated (or correlated) with Jinyu Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinyu Bio Technology has no effect on the direction of Shanghai Pudong i.e., Shanghai Pudong and Jinyu Bio go up and down completely randomly.
Pair Corralation between Shanghai Pudong and Jinyu Bio
Assuming the 90 days trading horizon Shanghai Pudong Development is expected to generate 0.71 times more return on investment than Jinyu Bio. However, Shanghai Pudong Development is 1.4 times less risky than Jinyu Bio. It trades about 0.16 of its potential returns per unit of risk. Jinyu Bio Technology Co is currently generating about 0.05 per unit of risk. If you would invest 825.00 in Shanghai Pudong Development on November 2, 2024 and sell it today you would earn a total of 240.00 from holding Shanghai Pudong Development or generate 29.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Pudong Development vs. Jinyu Bio Technology Co
Performance |
| Timeline |
| Shanghai Pudong Deve |
| Jinyu Bio Technology |
Shanghai Pudong and Jinyu Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Pudong and Jinyu Bio
The main advantage of trading using opposite Shanghai Pudong and Jinyu Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Pudong position performs unexpectedly, Jinyu Bio 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 Jinyu Bio will offset losses from the drop in Jinyu Bio's long position.| Shanghai Pudong vs. Southchip Semiconductor Technology | Shanghai Pudong vs. StarPower Semiconductor | Shanghai Pudong vs. Jiangsu Yueda Investment | Shanghai Pudong vs. Suzhou Oriental Semiconductor |
| Jinyu Bio vs. Chengdu Xingrong Investment | Jinyu Bio vs. Harbin Air Conditioning | Jinyu Bio vs. Shanghai Material Trading | Jinyu Bio vs. Jiangsu Financial Leasing |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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