Correlation Between Bank of China and Jinhe Biotechnology
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By analyzing existing cross correlation between Bank of China and Jinhe Biotechnology Co, you can compare the effects of market volatilities on Bank of China 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 China with a short position of Jinhe Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Jinhe Biotechnology.
Diversification Opportunities for Bank of China and Jinhe Biotechnology
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bank and Jinhe is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China 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 China 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 China 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 China i.e., Bank of China and Jinhe Biotechnology go up and down completely randomly.
Pair Corralation between Bank of China and Jinhe Biotechnology
Assuming the 90 days trading horizon Bank of China is expected to generate 0.6 times more return on investment than Jinhe Biotechnology. However, Bank of China is 1.66 times less risky than Jinhe Biotechnology. It trades about 0.04 of its potential returns per unit of risk. Jinhe Biotechnology Co is currently generating about 0.0 per unit of risk. If you would invest 423.00 in Bank of China on August 29, 2024 and sell it today you would earn a total of 76.00 from holding Bank of China or generate 17.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Jinhe Biotechnology Co
Performance |
| Timeline |
| Bank of China |
| Jinhe Biotechnology |
Bank of China and Jinhe Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Jinhe Biotechnology
The main advantage of trading using opposite Bank of China and Jinhe Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China 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 China vs. Zhengzhou Qianweiyangchu Food | Bank of China vs. Guangdong Advertising Co | Bank of China vs. Linewell Software Co | Bank of China vs. Juewei Food Co |
| Jinhe Biotechnology vs. JCHX Mining Management | Jinhe Biotechnology vs. Xinjiang Baodi Mining | Jinhe Biotechnology vs. Gansu Huangtai Wine marketing | Jinhe Biotechnology vs. Harbin Air Conditioning |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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