Correlation Between Juewei Food and Shenzhen Bioeasy
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By analyzing existing cross correlation between Juewei Food Co and Shenzhen Bioeasy Biotechnology, you can compare the effects of market volatilities on Juewei Food and Shenzhen Bioeasy 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 Shenzhen Bioeasy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juewei Food and Shenzhen Bioeasy.
Diversification Opportunities for Juewei Food and Shenzhen Bioeasy
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Juewei and Shenzhen is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Juewei Food Co and Shenzhen Bioeasy Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Bioeasy Bio 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 Shenzhen Bioeasy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Bioeasy Bio has no effect on the direction of Juewei Food i.e., Juewei Food and Shenzhen Bioeasy go up and down completely randomly.
Pair Corralation between Juewei Food and Shenzhen Bioeasy
Assuming the 90 days trading horizon Juewei Food Co is expected to under-perform the Shenzhen Bioeasy. But the stock apears to be less risky and, when comparing its historical volatility, Juewei Food Co is 1.41 times less risky than Shenzhen Bioeasy. The stock trades about -0.06 of its potential returns per unit of risk. The Shenzhen Bioeasy Biotechnology is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,175 in Shenzhen Bioeasy Biotechnology on October 16, 2024 and sell it today you would lose (390.00) from holding Shenzhen Bioeasy Biotechnology or give up 33.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juewei Food Co vs. Shenzhen Bioeasy Biotechnology
Performance |
| Timeline |
| Juewei Food |
| Shenzhen Bioeasy Bio |
Juewei Food and Shenzhen Bioeasy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juewei Food and Shenzhen Bioeasy
The main advantage of trading using opposite Juewei Food and Shenzhen Bioeasy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juewei Food position performs unexpectedly, Shenzhen Bioeasy 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 Shenzhen Bioeasy will offset losses from the drop in Shenzhen Bioeasy's long position.| Juewei Food vs. Shenyang Blue Silver | Juewei Food vs. Uroica Mining Safety | Juewei Food vs. Shenzhen Silver Basis | Juewei Food vs. Shengda Mining Co |
| Shenzhen Bioeasy vs. China Life Insurance | Shenzhen Bioeasy vs. Shanghai Jinfeng Wine | Shenzhen Bioeasy vs. Shanghai Yanpu Metal | Shenzhen Bioeasy vs. Guangdong Jingyi Metal |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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