Correlation Between Jiangsu Bioperfectus and Changchun High
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By analyzing existing cross correlation between Jiangsu Bioperfectus Technologies and Changchun High New, you can compare the effects of market volatilities on Jiangsu Bioperfectus and Changchun High 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 Changchun High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Bioperfectus and Changchun High.
Diversification Opportunities for Jiangsu Bioperfectus and Changchun High
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Changchun is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Bioperfectus Technolog and Changchun High New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun High New 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 Changchun High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun High New has no effect on the direction of Jiangsu Bioperfectus i.e., Jiangsu Bioperfectus and Changchun High go up and down completely randomly.
Pair Corralation between Jiangsu Bioperfectus and Changchun High
Assuming the 90 days trading horizon Jiangsu Bioperfectus Technologies is expected to under-perform the Changchun High. In addition to that, Jiangsu Bioperfectus is 1.21 times more volatile than Changchun High New. It trades about -0.1 of its total potential returns per unit of risk. Changchun High New is currently generating about -0.03 per unit of volatility. If you would invest 11,159 in Changchun High New on August 27, 2024 and sell it today you would lose (199.00) from holding Changchun High New or give up 1.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Bioperfectus Technolog vs. Changchun High New
Performance |
| Timeline |
| Jiangsu Bioperfectus |
| Changchun High New |
Jiangsu Bioperfectus and Changchun High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Bioperfectus and Changchun High
The main advantage of trading using opposite Jiangsu Bioperfectus and Changchun High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Bioperfectus position performs unexpectedly, Changchun High 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 Changchun High will offset losses from the drop in Changchun High's long position.The idea behind Jiangsu Bioperfectus Technologies and Changchun High New 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.
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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