Correlation Between Hainan Haiqi and Jinhe Biotechnology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hainan Haiqi Transportation and Jinhe Biotechnology Co, you can compare the effects of market volatilities on Hainan Haiqi 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 Hainan Haiqi with a short position of Jinhe Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and Jinhe Biotechnology.
Diversification Opportunities for Hainan Haiqi and Jinhe Biotechnology
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hainan and Jinhe is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and Jinhe Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhe Biotechnology and Hainan Haiqi 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 Hainan Haiqi Transportation 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 Hainan Haiqi i.e., Hainan Haiqi and Jinhe Biotechnology go up and down completely randomly.
Pair Corralation between Hainan Haiqi and Jinhe Biotechnology
Assuming the 90 days trading horizon Hainan Haiqi Transportation is expected to generate 1.29 times more return on investment than Jinhe Biotechnology. However, Hainan Haiqi is 1.29 times more volatile than Jinhe Biotechnology Co. It trades about 0.01 of its potential returns per unit of risk. Jinhe Biotechnology Co is currently generating about 0.01 per unit of risk. If you would invest 2,093 in Hainan Haiqi Transportation on August 31, 2024 and sell it today you would lose (77.00) from holding Hainan Haiqi Transportation or give up 3.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Haiqi Transportation vs. Jinhe Biotechnology Co
Performance |
| Timeline |
| Hainan Haiqi Transpo |
| Jinhe Biotechnology |
Hainan Haiqi and Jinhe Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Haiqi and Jinhe Biotechnology
The main advantage of trading using opposite Hainan Haiqi and Jinhe Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi 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.| Hainan Haiqi vs. Zhejiang Yongjin Metal | Hainan Haiqi vs. Shanghai Yanpu Metal | Hainan Haiqi vs. Ye Chiu Metal | Hainan Haiqi vs. Shenzhen Bioeasy Biotechnology |
| Jinhe Biotechnology vs. PetroChina Co Ltd | Jinhe Biotechnology vs. China Mobile Limited | Jinhe Biotechnology vs. Ping An Insurance | Jinhe Biotechnology vs. China Petroleum Chemical |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |