Correlation Between Zhejiang Yongjin and Jinhe Biotechnology
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By analyzing existing cross correlation between Zhejiang Yongjin Metal and Jinhe Biotechnology Co, you can compare the effects of market volatilities on Zhejiang Yongjin 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 Zhejiang Yongjin with a short position of Jinhe Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yongjin and Jinhe Biotechnology.
Diversification Opportunities for Zhejiang Yongjin and Jinhe Biotechnology
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and Jinhe is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yongjin Metal and Jinhe Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhe Biotechnology and Zhejiang Yongjin 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 Zhejiang Yongjin Metal 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 Zhejiang Yongjin i.e., Zhejiang Yongjin and Jinhe Biotechnology go up and down completely randomly.
Pair Corralation between Zhejiang Yongjin and Jinhe Biotechnology
Assuming the 90 days trading horizon Zhejiang Yongjin Metal is expected to generate 0.6 times more return on investment than Jinhe Biotechnology. However, Zhejiang Yongjin Metal is 1.67 times less risky than Jinhe Biotechnology. It trades about -0.11 of its potential returns per unit of risk. Jinhe Biotechnology Co is currently generating about -0.28 per unit of risk. If you would invest 1,912 in Zhejiang Yongjin Metal on October 17, 2024 and sell it today you would lose (76.00) from holding Zhejiang Yongjin Metal or give up 3.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yongjin Metal vs. Jinhe Biotechnology Co
Performance |
| Timeline |
| Zhejiang Yongjin Metal |
| Jinhe Biotechnology |
Zhejiang Yongjin and Jinhe Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yongjin and Jinhe Biotechnology
The main advantage of trading using opposite Zhejiang Yongjin and Jinhe Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yongjin 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.| Zhejiang Yongjin vs. Hongrun Construction Group | Zhejiang Yongjin vs. Anhui Huilong Agricultural | Zhejiang Yongjin vs. Masterwork Machinery | Zhejiang Yongjin vs. Lutian Machinery Co |
| Jinhe Biotechnology vs. China Aluminum International | Jinhe Biotechnology vs. CICC Fund Management | Jinhe Biotechnology vs. Zhejiang Yongjin Metal | Jinhe Biotechnology vs. Yuanjie Semiconductor Technology |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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