Correlation Between Changchun BCHT and Xiamen Jihong
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By analyzing existing cross correlation between Changchun BCHT Biotechnology and Xiamen Jihong Package, you can compare the effects of market volatilities on Changchun BCHT and Xiamen Jihong 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 Changchun BCHT with a short position of Xiamen Jihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun BCHT and Xiamen Jihong.
Diversification Opportunities for Changchun BCHT and Xiamen Jihong
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Changchun and Xiamen is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Changchun BCHT Biotechnology and Xiamen Jihong Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Jihong Package and Changchun BCHT 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 Changchun BCHT Biotechnology are associated (or correlated) with Xiamen Jihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Jihong Package has no effect on the direction of Changchun BCHT i.e., Changchun BCHT and Xiamen Jihong go up and down completely randomly.
Pair Corralation between Changchun BCHT and Xiamen Jihong
Assuming the 90 days trading horizon Changchun BCHT Biotechnology is expected to under-perform the Xiamen Jihong. But the stock apears to be less risky and, when comparing its historical volatility, Changchun BCHT Biotechnology is 1.56 times less risky than Xiamen Jihong. The stock trades about -0.28 of its potential returns per unit of risk. The Xiamen Jihong Package is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 1,403 in Xiamen Jihong Package on October 23, 2024 and sell it today you would lose (124.00) from holding Xiamen Jihong Package or give up 8.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun BCHT Biotechnology vs. Xiamen Jihong Package
Performance |
| Timeline |
| Changchun BCHT Biote |
| Xiamen Jihong Package |
Changchun BCHT and Xiamen Jihong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun BCHT and Xiamen Jihong
The main advantage of trading using opposite Changchun BCHT and Xiamen Jihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun BCHT position performs unexpectedly, Xiamen Jihong 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 Xiamen Jihong will offset losses from the drop in Xiamen Jihong's long position.| Changchun BCHT vs. Hubei Xingfa Chemicals | Changchun BCHT vs. Ningxia Younglight Chemicals | Changchun BCHT vs. Porton Fine Chemicals | Changchun BCHT vs. Angang Steel Co |
| Xiamen Jihong vs. Xinjiang Baodi Mining | Xiamen Jihong vs. Guangdong Silvere Sci | Xiamen Jihong vs. Glodon Software Co | Xiamen Jihong vs. Ningbo Ligong Online |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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