Correlation Between Xiangyang Automobile and Suzhou Novoprotein
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and Suzhou Novoprotein Scientific, you can compare the effects of market volatilities on Xiangyang Automobile and Suzhou Novoprotein 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 Xiangyang Automobile with a short position of Suzhou Novoprotein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Suzhou Novoprotein.
Diversification Opportunities for Xiangyang Automobile and Suzhou Novoprotein
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiangyang and Suzhou is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and Suzhou Novoprotein Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Novoprotein and Xiangyang Automobile 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 Xiangyang Automobile Bearing are associated (or correlated) with Suzhou Novoprotein. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Novoprotein has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and Suzhou Novoprotein go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Suzhou Novoprotein
Assuming the 90 days trading horizon Xiangyang Automobile Bearing is expected to generate 1.48 times more return on investment than Suzhou Novoprotein. However, Xiangyang Automobile is 1.48 times more volatile than Suzhou Novoprotein Scientific. It trades about -0.01 of its potential returns per unit of risk. Suzhou Novoprotein Scientific is currently generating about -0.09 per unit of risk. If you would invest 592.00 in Xiangyang Automobile Bearing on August 29, 2024 and sell it today you would lose (12.00) from holding Xiangyang Automobile Bearing or give up 2.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. Suzhou Novoprotein Scientific
Performance |
| Timeline |
| Xiangyang Automobile |
| Suzhou Novoprotein |
Xiangyang Automobile and Suzhou Novoprotein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and Suzhou Novoprotein
The main advantage of trading using opposite Xiangyang Automobile and Suzhou Novoprotein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, Suzhou Novoprotein 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 Suzhou Novoprotein will offset losses from the drop in Suzhou Novoprotein's long position.| Xiangyang Automobile vs. Agricultural Bank of | Xiangyang Automobile vs. Industrial and Commercial | Xiangyang Automobile vs. Bank of China | Xiangyang Automobile vs. China Construction Bank |
| Suzhou Novoprotein vs. Nanjing Medlander Medical | Suzhou Novoprotein vs. Double Medical Technology | Suzhou Novoprotein vs. Touchstone International Medical | Suzhou Novoprotein vs. Changchun UP Optotech |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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