Correlation Between Cabio Biotech and Jiujiang Shanshui
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By analyzing existing cross correlation between Cabio Biotech Wuhan and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on Cabio Biotech and Jiujiang Shanshui 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 Cabio Biotech with a short position of Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cabio Biotech and Jiujiang Shanshui.
Diversification Opportunities for Cabio Biotech and Jiujiang Shanshui
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cabio and Jiujiang is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Cabio Biotech Wuhan and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui and Cabio Biotech 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 Cabio Biotech Wuhan are associated (or correlated) with Jiujiang Shanshui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiujiang Shanshui has no effect on the direction of Cabio Biotech i.e., Cabio Biotech and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between Cabio Biotech and Jiujiang Shanshui
Assuming the 90 days trading horizon Cabio Biotech Wuhan is expected to under-perform the Jiujiang Shanshui. In addition to that, Cabio Biotech is 1.48 times more volatile than Jiujiang Shanshui Technology. It trades about -0.03 of its total potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about -0.01 per unit of volatility. If you would invest 1,913 in Jiujiang Shanshui Technology on October 16, 2024 and sell it today you would lose (454.00) from holding Jiujiang Shanshui Technology or give up 23.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cabio Biotech Wuhan vs. Jiujiang Shanshui Technology
Performance |
| Timeline |
| Cabio Biotech Wuhan |
| Jiujiang Shanshui |
Cabio Biotech and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cabio Biotech and Jiujiang Shanshui
The main advantage of trading using opposite Cabio Biotech and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cabio Biotech position performs unexpectedly, Jiujiang Shanshui 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 Jiujiang Shanshui will offset losses from the drop in Jiujiang Shanshui's long position.| Cabio Biotech vs. Ming Yang Smart | Cabio Biotech vs. 159681 | Cabio Biotech vs. 159005 | Cabio Biotech vs. Loctek Ergonomic Technology |
| Jiujiang Shanshui vs. Shenzhen Glory Medical | Jiujiang Shanshui vs. Xiangyu Medical Co | Jiujiang Shanshui vs. Qingdao Haier Biomedical | Jiujiang Shanshui vs. Haima Automobile Group |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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