Correlation Between Shaanxi Meineng and Suzhou Novoprotein
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By analyzing existing cross correlation between Shaanxi Meineng Clean and Suzhou Novoprotein Scientific, you can compare the effects of market volatilities on Shaanxi Meineng 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 Shaanxi Meineng with a short position of Suzhou Novoprotein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Meineng and Suzhou Novoprotein.
Diversification Opportunities for Shaanxi Meineng and Suzhou Novoprotein
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shaanxi and Suzhou is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Meineng Clean and Suzhou Novoprotein Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Novoprotein and Shaanxi Meineng 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 Shaanxi Meineng Clean 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 Shaanxi Meineng i.e., Shaanxi Meineng and Suzhou Novoprotein go up and down completely randomly.
Pair Corralation between Shaanxi Meineng and Suzhou Novoprotein
Assuming the 90 days trading horizon Shaanxi Meineng Clean is expected to generate 0.92 times more return on investment than Suzhou Novoprotein. However, Shaanxi Meineng Clean is 1.08 times less risky than Suzhou Novoprotein. It trades about 0.04 of its potential returns per unit of risk. Suzhou Novoprotein Scientific is currently generating about 0.03 per unit of risk. If you would invest 1,136 in Shaanxi Meineng Clean on October 26, 2024 and sell it today you would earn a total of 99.00 from holding Shaanxi Meineng Clean or generate 8.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Meineng Clean vs. Suzhou Novoprotein Scientific
Performance |
| Timeline |
| Shaanxi Meineng Clean |
| Suzhou Novoprotein |
Shaanxi Meineng and Suzhou Novoprotein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Meineng and Suzhou Novoprotein
The main advantage of trading using opposite Shaanxi Meineng and Suzhou Novoprotein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Meineng 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.| Shaanxi Meineng vs. PetroChina Co Ltd | Shaanxi Meineng vs. China Mobile Limited | Shaanxi Meineng vs. CNOOC Limited | Shaanxi Meineng vs. Ping An Insurance |
| Suzhou Novoprotein vs. Shanghai Xinhua Media | Suzhou Novoprotein vs. Goodwill E Health | Suzhou Novoprotein vs. Changjiang Publishing Media | Suzhou Novoprotein vs. Guangzhou Jinyi Media |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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