Correlation Between Jinhe Biotechnology and Shanghai Action
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By analyzing existing cross correlation between Jinhe Biotechnology Co and Shanghai Action Education, you can compare the effects of market volatilities on Jinhe Biotechnology and Shanghai Action 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 Jinhe Biotechnology with a short position of Shanghai Action. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Shanghai Action.
Diversification Opportunities for Jinhe Biotechnology and Shanghai Action
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jinhe and Shanghai is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology Co and Shanghai Action Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Action Education and Jinhe Biotechnology 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 Jinhe Biotechnology Co are associated (or correlated) with Shanghai Action. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Action Education has no effect on the direction of Jinhe Biotechnology i.e., Jinhe Biotechnology and Shanghai Action go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Shanghai Action
Assuming the 90 days trading horizon Jinhe Biotechnology Co is expected to under-perform the Shanghai Action. In addition to that, Jinhe Biotechnology is 1.17 times more volatile than Shanghai Action Education. It trades about -0.16 of its total potential returns per unit of risk. Shanghai Action Education is currently generating about -0.01 per unit of volatility. If you would invest 3,616 in Shanghai Action Education on October 9, 2024 and sell it today you would lose (31.00) from holding Shanghai Action Education or give up 0.86% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Jinhe Biotechnology Co vs. Shanghai Action Education
Performance |
Timeline |
Jinhe Biotechnology |
Shanghai Action Education |
Jinhe Biotechnology and Shanghai Action Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jinhe Biotechnology and Shanghai Action
The main advantage of trading using opposite Jinhe Biotechnology and Shanghai Action positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology position performs unexpectedly, Shanghai Action 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 Shanghai Action will offset losses from the drop in Shanghai Action's long position.Jinhe Biotechnology vs. CICC Fund Management | Jinhe Biotechnology vs. Henan Shuanghui Investment | Jinhe Biotechnology vs. China Asset Management | Jinhe Biotechnology vs. Xiandai Investment Co |
Shanghai Action vs. Ningbo Construction Co | Shanghai Action vs. Yunnan Jianzhijia Health Chain | Shanghai Action vs. Long Yuan Construction | Shanghai Action vs. Anhui Huaren Health |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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