Correlation Between Anhui Transport and Jinhe Biotechnology
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By analyzing existing cross correlation between Anhui Transport Consulting and Jinhe Biotechnology Co, you can compare the effects of market volatilities on Anhui Transport 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 Anhui Transport with a short position of Jinhe Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Jinhe Biotechnology.
Diversification Opportunities for Anhui Transport and Jinhe Biotechnology
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Anhui and Jinhe is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Jinhe Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhe Biotechnology and Anhui Transport 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 Anhui Transport Consulting 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 Anhui Transport i.e., Anhui Transport and Jinhe Biotechnology go up and down completely randomly.
Pair Corralation between Anhui Transport and Jinhe Biotechnology
Assuming the 90 days trading horizon Anhui Transport Consulting is expected to under-perform the Jinhe Biotechnology. In addition to that, Anhui Transport is 1.15 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 0.01 per unit of volatility. If you would invest 471.00 in Jinhe Biotechnology Co on August 31, 2024 and sell it today you would lose (12.00) from holding Jinhe Biotechnology Co or give up 2.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Transport Consulting vs. Jinhe Biotechnology Co
Performance |
| Timeline |
| Anhui Transport Cons |
| Jinhe Biotechnology |
Anhui Transport and Jinhe Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Jinhe Biotechnology
The main advantage of trading using opposite Anhui Transport and Jinhe Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport 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.| Anhui Transport vs. Cultural Investment Holdings | Anhui Transport vs. Gome Telecom Equipment | Anhui Transport vs. Bus Online Co | Anhui Transport vs. Holitech Technology Co |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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