Correlation Between Chongqing Road and Jinyu Bio
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By analyzing existing cross correlation between Chongqing Road Bridge and Jinyu Bio Technology Co, you can compare the effects of market volatilities on Chongqing Road 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 Chongqing Road with a short position of Jinyu Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Road and Jinyu Bio.
Diversification Opportunities for Chongqing Road and Jinyu Bio
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chongqing and Jinyu is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Road Bridge 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 Chongqing Road 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 Chongqing Road Bridge 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 Chongqing Road i.e., Chongqing Road and Jinyu Bio go up and down completely randomly.
Pair Corralation between Chongqing Road and Jinyu Bio
Assuming the 90 days trading horizon Chongqing Road Bridge is expected to generate 1.34 times more return on investment than Jinyu Bio. However, Chongqing Road is 1.34 times more volatile than Jinyu Bio Technology Co. It trades about 0.03 of its potential returns per unit of risk. Jinyu Bio Technology Co is currently generating about -0.02 per unit of risk. If you would invest 521.00 in Chongqing Road Bridge on September 3, 2024 and sell it today you would earn a total of 147.00 from holding Chongqing Road Bridge or generate 28.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Road Bridge vs. Jinyu Bio Technology Co
Performance |
| Timeline |
| Chongqing Road Bridge |
| Jinyu Bio Technology |
Chongqing Road and Jinyu Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Road and Jinyu Bio
The main advantage of trading using opposite Chongqing Road and Jinyu Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Road 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.| Chongqing Road vs. Jiahe Foods Industry | Chongqing Road vs. Xiwang Foodstuffs Co | Chongqing Road vs. Zhongshan Public Utilities | Chongqing Road vs. Jiajia Food Group |
| Jinyu Bio vs. Chengdu Kanghua Biological | Jinyu Bio vs. Beijing Wantai Biological | Jinyu Bio vs. Suzhou Novoprotein Scientific | Jinyu Bio vs. Aluminum Corp of |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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