Correlation Between Changchun BCHT and JiShi Media
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By analyzing existing cross correlation between Changchun BCHT Biotechnology and JiShi Media Co, you can compare the effects of market volatilities on Changchun BCHT and JiShi Media 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 JiShi Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun BCHT and JiShi Media.
Diversification Opportunities for Changchun BCHT and JiShi Media
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Changchun and JiShi is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Changchun BCHT Biotechnology and JiShi Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JiShi Media 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 JiShi Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JiShi Media has no effect on the direction of Changchun BCHT i.e., Changchun BCHT and JiShi Media go up and down completely randomly.
Pair Corralation between Changchun BCHT and JiShi Media
Assuming the 90 days trading horizon Changchun BCHT Biotechnology is expected to under-perform the JiShi Media. But the stock apears to be less risky and, when comparing its historical volatility, Changchun BCHT Biotechnology is 2.16 times less risky than JiShi Media. The stock trades about -0.05 of its potential returns per unit of risk. The JiShi Media Co is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 190.00 in JiShi Media Co on September 14, 2024 and sell it today you would earn a total of 64.00 from holding JiShi Media Co or generate 33.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun BCHT Biotechnology vs. JiShi Media Co
Performance |
| Timeline |
| Changchun BCHT Biote |
| JiShi Media |
Changchun BCHT and JiShi Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun BCHT and JiShi Media
The main advantage of trading using opposite Changchun BCHT and JiShi Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun BCHT position performs unexpectedly, JiShi Media 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 JiShi Media will offset losses from the drop in JiShi Media's long position.| Changchun BCHT vs. Chengtun Mining Group | Changchun BCHT vs. Jiangsu Yueda Investment | Changchun BCHT vs. Minmetals Capital Co | Changchun BCHT vs. Hefei Metalforming Mach |
| JiShi Media vs. Ningbo MedicalSystem Biotechnology | JiShi Media vs. Jiangsu GDK Biotechnology | JiShi Media vs. Changchun BCHT Biotechnology | JiShi Media vs. Postal Savings Bank |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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