Correlation Between Hongrun Construction and Suzhou Novoprotein
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By analyzing existing cross correlation between Hongrun Construction Group and Suzhou Novoprotein Scientific, you can compare the effects of market volatilities on Hongrun Construction 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 Hongrun Construction with a short position of Suzhou Novoprotein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hongrun Construction and Suzhou Novoprotein.
Diversification Opportunities for Hongrun Construction and Suzhou Novoprotein
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hongrun and Suzhou is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Hongrun Construction Group and Suzhou Novoprotein Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Novoprotein and Hongrun Construction 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 Hongrun Construction Group 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 Hongrun Construction i.e., Hongrun Construction and Suzhou Novoprotein go up and down completely randomly.
Pair Corralation between Hongrun Construction and Suzhou Novoprotein
Assuming the 90 days trading horizon Hongrun Construction Group is expected to generate 1.17 times more return on investment than Suzhou Novoprotein. However, Hongrun Construction is 1.17 times more volatile than Suzhou Novoprotein Scientific. It trades about 0.14 of its potential returns per unit of risk. Suzhou Novoprotein Scientific is currently generating about -0.08 per unit of risk. If you would invest 458.00 in Hongrun Construction Group on September 13, 2024 and sell it today you would earn a total of 31.00 from holding Hongrun Construction Group or generate 6.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hongrun Construction Group vs. Suzhou Novoprotein Scientific
Performance |
| Timeline |
| Hongrun Construction |
| Suzhou Novoprotein |
Hongrun Construction and Suzhou Novoprotein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hongrun Construction and Suzhou Novoprotein
The main advantage of trading using opposite Hongrun Construction and Suzhou Novoprotein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hongrun Construction 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.| Hongrun Construction vs. Ming Yang Smart | Hongrun Construction vs. 159681 | Hongrun Construction vs. 159005 | Hongrun Construction vs. Loctek Ergonomic Technology |
| Suzhou Novoprotein vs. Hang Xiao Steel | Suzhou Novoprotein vs. Vanfund Urban Investment | Suzhou Novoprotein vs. Harbin Air Conditioning | Suzhou Novoprotein vs. Beijing SPC Environment |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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