Correlation Between Wuhan Xianglong and Jinyu Bio
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By analyzing existing cross correlation between Wuhan Xianglong Power and Jinyu Bio Technology Co, you can compare the effects of market volatilities on Wuhan Xianglong 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 Wuhan Xianglong with a short position of Jinyu Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Xianglong and Jinyu Bio.
Diversification Opportunities for Wuhan Xianglong and Jinyu Bio
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wuhan and Jinyu is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Xianglong Power 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 Wuhan Xianglong 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 Wuhan Xianglong Power 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 Wuhan Xianglong i.e., Wuhan Xianglong and Jinyu Bio go up and down completely randomly.
Pair Corralation between Wuhan Xianglong and Jinyu Bio
Assuming the 90 days trading horizon Wuhan Xianglong Power is expected to generate 1.54 times more return on investment than Jinyu Bio. However, Wuhan Xianglong is 1.54 times more volatile than Jinyu Bio Technology Co. It trades about 0.04 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 858.00 in Wuhan Xianglong Power on September 3, 2024 and sell it today you would earn a total of 370.00 from holding Wuhan Xianglong Power or generate 43.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Xianglong Power vs. Jinyu Bio Technology Co
Performance |
| Timeline |
| Wuhan Xianglong Power |
| Jinyu Bio Technology |
Wuhan Xianglong and Jinyu Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Xianglong and Jinyu Bio
The main advantage of trading using opposite Wuhan Xianglong and Jinyu Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Xianglong 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.| Wuhan Xianglong vs. Cultural Investment Holdings | Wuhan Xianglong vs. Chengtun Mining Group | Wuhan Xianglong vs. Nuode Investment Co | Wuhan Xianglong vs. Metro Investment Development |
| 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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