Correlation Between Jiangsu Financial and Jinhe Biotechnology
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Jinhe Biotechnology Co, you can compare the effects of market volatilities on Jiangsu Financial 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 Financial with a short position of Jinhe Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Jinhe Biotechnology.
Diversification Opportunities for Jiangsu Financial and Jinhe Biotechnology
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jiangsu and Jinhe is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing 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 Financial 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 Financial Leasing 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 Financial i.e., Jiangsu Financial and Jinhe Biotechnology go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Jinhe Biotechnology
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to generate 0.45 times more return on investment than Jinhe Biotechnology. However, Jiangsu Financial Leasing is 2.24 times less risky than Jinhe Biotechnology. It trades about 0.01 of its potential returns per unit of risk. Jinhe Biotechnology Co is currently generating about -0.18 per unit of risk. If you would invest 518.00 in Jiangsu Financial Leasing on October 11, 2024 and sell it today you would earn a total of 1.00 from holding Jiangsu Financial Leasing or generate 0.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. Jinhe Biotechnology Co
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Jinhe Biotechnology |
Jiangsu Financial and Jinhe Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Jinhe Biotechnology
The main advantage of trading using opposite Jiangsu Financial and Jinhe Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial 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 Financial vs. Tibet Huayu Mining | Jiangsu Financial vs. China Minmetals Rare | Jiangsu Financial vs. Financial Street Holdings | Jiangsu Financial vs. Ping An Insurance |
| Jinhe Biotechnology vs. Jiangsu Financial Leasing | Jinhe Biotechnology vs. Tengda Construction Group | Jinhe Biotechnology vs. Jiangxi Hengda Hi Tech | Jinhe Biotechnology vs. Huasi Agricultural Development |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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