Correlation Between Zhongtai Securities and Jinhe Biotechnology
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By analyzing existing cross correlation between Zhongtai Securities Co and Jinhe Biotechnology Co, you can compare the effects of market volatilities on Zhongtai Securities 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 Zhongtai Securities with a short position of Jinhe Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtai Securities and Jinhe Biotechnology.
Diversification Opportunities for Zhongtai Securities and Jinhe Biotechnology
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhongtai and Jinhe is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtai Securities Co and Jinhe Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhe Biotechnology and Zhongtai Securities 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 Zhongtai Securities Co 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 Zhongtai Securities i.e., Zhongtai Securities and Jinhe Biotechnology go up and down completely randomly.
Pair Corralation between Zhongtai Securities and Jinhe Biotechnology
Assuming the 90 days trading horizon Zhongtai Securities is expected to generate 29.91 times less return on investment than Jinhe Biotechnology. In addition to that, Zhongtai Securities is 1.11 times more volatile than Jinhe Biotechnology Co. It trades about 0.0 of its total potential returns per unit of risk. Jinhe Biotechnology Co is currently generating about 0.11 per unit of volatility. If you would invest 439.00 in Jinhe Biotechnology Co on September 5, 2024 and sell it today you would earn a total of 19.00 from holding Jinhe Biotechnology Co or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Zhongtai Securities Co vs. Jinhe Biotechnology Co
Performance |
| Timeline |
| Zhongtai Securities |
| Jinhe Biotechnology |
Zhongtai Securities and Jinhe Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtai Securities and Jinhe Biotechnology
The main advantage of trading using opposite Zhongtai Securities and Jinhe Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtai Securities 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.| Zhongtai Securities vs. Jinhe Biotechnology Co | Zhongtai Securities vs. CSSC Offshore Marine | Zhongtai Securities vs. PKU HealthCare Corp | Zhongtai Securities vs. Shanghai Rongtai Health |
| Jinhe Biotechnology vs. Industrial and Commercial | Jinhe Biotechnology vs. Agricultural Bank of | Jinhe Biotechnology vs. China Construction Bank | Jinhe Biotechnology vs. Bank of China |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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