Correlation Between Zhongtong Guomai and Jinyu Bio
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Jinyu Bio Technology Co, you can compare the effects of market volatilities on Zhongtong Guomai and Jinyu 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 Zhongtong Guomai with a short position of Jinyu Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Jinyu Bio.
Diversification Opportunities for Zhongtong Guomai and Jinyu Bio
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zhongtong and Jinyu is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Jinyu Bio Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinyu Bio Technology and Zhongtong Guomai 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 Zhongtong Guomai Communication are associated (or correlated) with Jinyu Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinyu Bio Technology has no effect on the direction of Zhongtong Guomai i.e., Zhongtong Guomai and Jinyu Bio go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Jinyu Bio
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to under-perform the Jinyu Bio. In addition to that, Zhongtong Guomai is 2.55 times more volatile than Jinyu Bio Technology Co. It trades about -0.08 of its total potential returns per unit of risk. Jinyu Bio Technology Co is currently generating about -0.09 per unit of volatility. If you would invest 699.00 in Jinyu Bio Technology Co on October 9, 2024 and sell it today you would lose (39.00) from holding Jinyu Bio Technology Co or give up 5.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Jinyu Bio Technology Co
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Jinyu Bio Technology |
Zhongtong Guomai and Jinyu Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Jinyu Bio
The main advantage of trading using opposite Zhongtong Guomai and Jinyu Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai position performs unexpectedly, Jinyu 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 Jinyu Bio will offset losses from the drop in Jinyu Bio's long position.| Zhongtong Guomai vs. Linewell Software Co | Zhongtong Guomai vs. Digiwin Software Co | Zhongtong Guomai vs. Sichuan Fulin Transportation | Zhongtong Guomai vs. Shandong Hi Speed RoadBridge |
| Jinyu Bio vs. Northking Information Technology | Jinyu Bio vs. Montage Technology Co | Jinyu Bio vs. Tibet Huayu Mining | Jinyu Bio vs. Tianjin Silvery Dragon |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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