Correlation Between Juewei Food and Nanhua Bio
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By analyzing existing cross correlation between Juewei Food Co and Nanhua Bio Medicine, you can compare the effects of market volatilities on Juewei Food and Nanhua Bio 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 Juewei Food with a short position of Nanhua Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juewei Food and Nanhua Bio.
Diversification Opportunities for Juewei Food and Nanhua Bio
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Juewei and Nanhua is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Juewei Food Co and Nanhua Bio Medicine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanhua Bio Medicine and Juewei Food 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 Juewei Food Co are associated (or correlated) with Nanhua Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanhua Bio Medicine has no effect on the direction of Juewei Food i.e., Juewei Food and Nanhua Bio go up and down completely randomly.
Pair Corralation between Juewei Food and Nanhua Bio
Assuming the 90 days trading horizon Juewei Food is expected to generate 1.23 times less return on investment than Nanhua Bio. But when comparing it to its historical volatility, Juewei Food Co is 1.03 times less risky than Nanhua Bio. It trades about 0.1 of its potential returns per unit of risk. Nanhua Bio Medicine is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 885.00 in Nanhua Bio Medicine on November 28, 2024 and sell it today you would earn a total of 30.00 from holding Nanhua Bio Medicine or generate 3.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Juewei Food Co vs. Nanhua Bio Medicine
Performance |
| Timeline |
| Juewei Food |
| Nanhua Bio Medicine |
Juewei Food and Nanhua Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juewei Food and Nanhua Bio
The main advantage of trading using opposite Juewei Food and Nanhua Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juewei Food position performs unexpectedly, Nanhua Bio 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 Nanhua Bio will offset losses from the drop in Nanhua Bio's long position.| Juewei Food vs. Guangxi Wuzhou Communications | Juewei Food vs. Nanning Chemical Industry | Juewei Food vs. Liaoning Dingjide Petrochemical | Juewei Food vs. Queclink Wireless Solutions |
| Nanhua Bio vs. Nanjing OLO Home | Nanhua Bio vs. Shenzhen Topway Video | Nanhua Bio vs. Beijing Kingsoft Office | Nanhua Bio vs. Markor International Home |
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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