Correlation Between Jiangsu Bioperfectus and BeiGene

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Can any of the company-specific risk be diversified away by investing in both Jiangsu Bioperfectus and BeiGene 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 BeiGene 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 BeiGene, you can compare the effects of market volatilities on Jiangsu Bioperfectus and BeiGene 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 BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Bioperfectus and BeiGene.

Diversification Opportunities for Jiangsu Bioperfectus and BeiGene

0.1
  Correlation Coefficient

Average diversification

The 3 months correlation between Jiangsu and BeiGene is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Bioperfectus Technolog and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene 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 BeiGene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeiGene has no effect on the direction of Jiangsu Bioperfectus i.e., Jiangsu Bioperfectus and BeiGene go up and down completely randomly.

Pair Corralation between Jiangsu Bioperfectus and BeiGene

Assuming the 90 days trading horizon Jiangsu Bioperfectus is expected to generate 14.37 times less return on investment than BeiGene. But when comparing it to its historical volatility, Jiangsu Bioperfectus Technologies is 1.53 times less risky than BeiGene. It trades about 0.04 of its potential returns per unit of risk. BeiGene is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest  15,935  in BeiGene on November 3, 2024 and sell it today you would earn a total of  3,134  from holding BeiGene or generate 19.67% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Jiangsu Bioperfectus Technolog  vs.  BeiGene

 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 March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
BeiGene 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in BeiGene are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, BeiGene sustained solid returns over the last few months and may actually be approaching a breakup point.

Jiangsu Bioperfectus and BeiGene Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Jiangsu Bioperfectus and BeiGene

The main advantage of trading using opposite Jiangsu Bioperfectus and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Bioperfectus position performs unexpectedly, BeiGene 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 BeiGene will offset losses from the drop in BeiGene's long position.
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The idea behind Jiangsu Bioperfectus Technologies and BeiGene 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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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

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