Correlation Between Guangzhou Seagull and Suzhou Novoprotein
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Seagull Kitchen and Suzhou Novoprotein Scientific, you can compare the effects of market volatilities on Guangzhou Seagull 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 Guangzhou Seagull with a short position of Suzhou Novoprotein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Seagull and Suzhou Novoprotein.
Diversification Opportunities for Guangzhou Seagull and Suzhou Novoprotein
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Suzhou is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Seagull Kitchen and Suzhou Novoprotein Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Novoprotein and Guangzhou Seagull 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 Guangzhou Seagull Kitchen 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 Guangzhou Seagull i.e., Guangzhou Seagull and Suzhou Novoprotein go up and down completely randomly.
Pair Corralation between Guangzhou Seagull and Suzhou Novoprotein
Assuming the 90 days trading horizon Guangzhou Seagull Kitchen is expected to generate 0.86 times more return on investment than Suzhou Novoprotein. However, Guangzhou Seagull Kitchen is 1.16 times less risky than Suzhou Novoprotein. It trades about 0.33 of its potential returns per unit of risk. Suzhou Novoprotein Scientific is currently generating about 0.13 per unit of risk. If you would invest 294.00 in Guangzhou Seagull Kitchen on September 5, 2024 and sell it today you would earn a total of 48.00 from holding Guangzhou Seagull Kitchen or generate 16.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Seagull Kitchen vs. Suzhou Novoprotein Scientific
Performance |
| Timeline |
| Guangzhou Seagull Kitchen |
| Suzhou Novoprotein |
Guangzhou Seagull and Suzhou Novoprotein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Seagull and Suzhou Novoprotein
The main advantage of trading using opposite Guangzhou Seagull and Suzhou Novoprotein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Seagull 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.| Guangzhou Seagull vs. Ming Yang Smart | Guangzhou Seagull vs. 159681 | Guangzhou Seagull vs. 159005 | Guangzhou Seagull vs. Loctek Ergonomic Technology |
| Suzhou Novoprotein vs. Hongrun Construction Group | Suzhou Novoprotein vs. Eastroc Beverage Group | Suzhou Novoprotein vs. Sinomach General Machinery | Suzhou Novoprotein vs. Guangzhou Seagull Kitchen |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |