Correlation Between Shanghai Yanpu and Jinhe Biotechnology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Yanpu Metal and Jinhe Biotechnology Co, you can compare the effects of market volatilities on Shanghai Yanpu 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 Shanghai Yanpu with a short position of Jinhe Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and Jinhe Biotechnology.
Diversification Opportunities for Shanghai Yanpu and Jinhe Biotechnology
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Jinhe is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu 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 Shanghai Yanpu 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 Shanghai Yanpu 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 Shanghai Yanpu i.e., Shanghai Yanpu and Jinhe Biotechnology go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and Jinhe Biotechnology
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to under-perform the Jinhe Biotechnology. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Yanpu Metal is 1.2 times less risky than Jinhe Biotechnology. The stock trades about -0.04 of its potential returns per unit of risk. The Jinhe Biotechnology Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 450.00 in Jinhe Biotechnology Co on September 28, 2024 and sell it today you would lose (1.00) from holding Jinhe Biotechnology Co or give up 0.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shanghai Yanpu Metal vs. Jinhe Biotechnology Co
Performance |
| Timeline |
| Shanghai Yanpu Metal |
| Jinhe Biotechnology |
Shanghai Yanpu and Jinhe Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yanpu and Jinhe Biotechnology
The main advantage of trading using opposite Shanghai Yanpu and Jinhe Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu 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.| Shanghai Yanpu vs. China Life Insurance | Shanghai Yanpu vs. Cinda Securities Co | Shanghai Yanpu vs. Piotech Inc A | Shanghai Yanpu vs. Dongxing Sec Co |
| Jinhe Biotechnology vs. Minmetals Capital Co | Jinhe Biotechnology vs. Shanghai Yanpu Metal | Jinhe Biotechnology vs. Guangdong Jingyi Metal | Jinhe Biotechnology vs. De Rucci Healthy |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |