Correlation Between Jiangsu Yueda and Jinhe Biotechnology
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By analyzing existing cross correlation between Jiangsu Yueda Investment and Jinhe Biotechnology Co, you can compare the effects of market volatilities on Jiangsu Yueda 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 Jiangsu Yueda with a short position of Jinhe Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yueda and Jinhe Biotechnology.
Diversification Opportunities for Jiangsu Yueda and Jinhe Biotechnology
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Jinhe is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yueda Investment and Jinhe Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhe Biotechnology and Jiangsu Yueda 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 Jiangsu Yueda Investment 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 Jiangsu Yueda i.e., Jiangsu Yueda and Jinhe Biotechnology go up and down completely randomly.
Pair Corralation between Jiangsu Yueda and Jinhe Biotechnology
Assuming the 90 days trading horizon Jiangsu Yueda is expected to generate 1.8 times less return on investment than Jinhe Biotechnology. In addition to that, Jiangsu Yueda is 1.04 times more volatile than Jinhe Biotechnology Co. It trades about 0.02 of its total potential returns per unit of risk. Jinhe Biotechnology Co is currently generating about 0.03 per unit of volatility. If you would invest 389.00 in Jinhe Biotechnology Co on October 25, 2024 and sell it today you would earn a total of 47.00 from holding Jinhe Biotechnology Co or generate 12.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yueda Investment vs. Jinhe Biotechnology Co
Performance |
| Timeline |
| Jiangsu Yueda Investment |
| Jinhe Biotechnology |
Jiangsu Yueda and Jinhe Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yueda and Jinhe Biotechnology
The main advantage of trading using opposite Jiangsu Yueda and Jinhe Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yueda 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.| Jiangsu Yueda vs. Kweichow Moutai Co | Jiangsu Yueda vs. Contemporary Amperex Technology | Jiangsu Yueda vs. Beijing Roborock Technology | Jiangsu Yueda vs. BYD Co Ltd |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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