Correlation Between Jiangsu Bioperfectus and ChengDu Hi

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Jiangsu Bioperfectus and ChengDu Hi at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Jiangsu Bioperfectus and ChengDu Hi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jiangsu Bioperfectus Technologies and ChengDu Hi Tech Development, you can compare the effects of market volatilities on Jiangsu Bioperfectus and ChengDu Hi 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 Jiangsu Bioperfectus with a short position of ChengDu Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Bioperfectus and ChengDu Hi.

Diversification Opportunities for Jiangsu Bioperfectus and ChengDu Hi

0.73
  Correlation Coefficient

Poor diversification

The 3 months correlation between Jiangsu and ChengDu is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Bioperfectus Technolog and ChengDu Hi Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChengDu Hi Tech and Jiangsu Bioperfectus 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 Jiangsu Bioperfectus Technologies are associated (or correlated) with ChengDu Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChengDu Hi Tech has no effect on the direction of Jiangsu Bioperfectus i.e., Jiangsu Bioperfectus and ChengDu Hi go up and down completely randomly.

Pair Corralation between Jiangsu Bioperfectus and ChengDu Hi

Assuming the 90 days trading horizon Jiangsu Bioperfectus Technologies is expected to under-perform the ChengDu Hi. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Bioperfectus Technologies is 1.8 times less risky than ChengDu Hi. The stock trades about -0.02 of its potential returns per unit of risk. The ChengDu Hi Tech Development is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  1,369  in ChengDu Hi Tech Development on October 25, 2024 and sell it today you would earn a total of  4,426  from holding ChengDu Hi Tech Development or generate 323.3% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Jiangsu Bioperfectus Technolog  vs.  ChengDu Hi Tech Development

 Performance 
       Timeline  
Jiangsu Bioperfectus 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Jiangsu Bioperfectus Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
ChengDu Hi Tech 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days ChengDu Hi Tech Development has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Jiangsu Bioperfectus and ChengDu Hi Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Jiangsu Bioperfectus and ChengDu Hi

The main advantage of trading using opposite Jiangsu Bioperfectus and ChengDu Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Bioperfectus position performs unexpectedly, ChengDu Hi 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 ChengDu Hi will offset losses from the drop in ChengDu Hi's long position.
Jiangsu Bioperfectus vs. Nexchip Semiconductor Corp
Jiangsu Bioperfectus vs. Mingchen Health Co
Jiangsu Bioperfectus vs. Heren Health Co
Jiangsu Bioperfectus vs. Hubei Tech Semiconductors
The idea behind Jiangsu Bioperfectus Technologies and ChengDu Hi Tech Development pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
ChengDu Hi vs. Montage Technology Co
ChengDu Hi vs. Hoshine Silicon Ind
ChengDu Hi vs. Eyebright Medical Technology
ChengDu Hi vs. HanS Laser Tech
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

Other Complementary Tools

Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY