Correlation Between Bank of Communications and Jinhe Biotechnology
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By analyzing existing cross correlation between Bank of Communications and Jinhe Biotechnology Co, you can compare the effects of market volatilities on Bank of Communications 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 Bank of Communications with a short position of Jinhe Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and Jinhe Biotechnology.
Diversification Opportunities for Bank of Communications and Jinhe Biotechnology
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and Jinhe is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications and Jinhe Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhe Biotechnology and Bank of Communications 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 Bank of Communications 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 Bank of Communications i.e., Bank of Communications and Jinhe Biotechnology go up and down completely randomly.
Pair Corralation between Bank of Communications and Jinhe Biotechnology
Assuming the 90 days trading horizon Bank of Communications is expected to under-perform the Jinhe Biotechnology. But the stock apears to be less risky and, when comparing its historical volatility, Bank of Communications is 2.25 times less risky than Jinhe Biotechnology. The stock trades about -0.14 of its potential returns per unit of risk. The Jinhe Biotechnology Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 438.00 in Jinhe Biotechnology Co on November 3, 2024 and sell it today you would lose (2.00) from holding Jinhe Biotechnology Co or give up 0.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Communications vs. Jinhe Biotechnology Co
Performance |
| Timeline |
| Bank of Communications |
| Jinhe Biotechnology |
Bank of Communications and Jinhe Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and Jinhe Biotechnology
The main advantage of trading using opposite Bank of Communications and Jinhe Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications 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.| Bank of Communications vs. Hengkang Medical Group | Bank of Communications vs. Shenzhen Glory Medical | Bank of Communications vs. Sino Medical Sciences | Bank of Communications vs. Winner Medical Co |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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