Correlation Between Sichuan Hebang and Jinzai Food
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By analyzing existing cross correlation between Sichuan Hebang Biotechnology and Jinzai Food Group, you can compare the effects of market volatilities on Sichuan Hebang and Jinzai Food 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 Sichuan Hebang with a short position of Jinzai Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Hebang and Jinzai Food.
Diversification Opportunities for Sichuan Hebang and Jinzai Food
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sichuan and Jinzai is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Hebang Biotechnology and Jinzai Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinzai Food Group and Sichuan Hebang 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 Sichuan Hebang Biotechnology are associated (or correlated) with Jinzai Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinzai Food Group has no effect on the direction of Sichuan Hebang i.e., Sichuan Hebang and Jinzai Food go up and down completely randomly.
Pair Corralation between Sichuan Hebang and Jinzai Food
Assuming the 90 days trading horizon Sichuan Hebang Biotechnology is expected to under-perform the Jinzai Food. But the stock apears to be less risky and, when comparing its historical volatility, Sichuan Hebang Biotechnology is 1.72 times less risky than Jinzai Food. The stock trades about -0.37 of its potential returns per unit of risk. The Jinzai Food Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,312 in Jinzai Food Group on October 11, 2024 and sell it today you would earn a total of 30.00 from holding Jinzai Food Group or generate 2.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Hebang Biotechnology vs. Jinzai Food Group
Performance |
| Timeline |
| Sichuan Hebang Biote |
| Jinzai Food Group |
Sichuan Hebang and Jinzai Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Hebang and Jinzai Food
The main advantage of trading using opposite Sichuan Hebang and Jinzai Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Hebang position performs unexpectedly, Jinzai Food 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 Jinzai Food will offset losses from the drop in Jinzai Food's long position.| Sichuan Hebang vs. Sichuan Fulin Transportation | Sichuan Hebang vs. Dazhong Transportation Group | Sichuan Hebang vs. Anhui Transport Consulting | Sichuan Hebang vs. Shanghai Broadband Technology |
| Jinzai Food vs. Guizhou Chanhen Chemical | Jinzai Food vs. Qijing Machinery | Jinzai Food vs. Guangzhou KDT Machinery | Jinzai Food vs. Lutian Machinery 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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