Correlation Between Zhejiang JIULI and Suzhou Novoprotein
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By analyzing existing cross correlation between Zhejiang JIULI Hi tech and Suzhou Novoprotein Scientific, you can compare the effects of market volatilities on Zhejiang JIULI 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 Zhejiang JIULI with a short position of Suzhou Novoprotein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang JIULI and Suzhou Novoprotein.
Diversification Opportunities for Zhejiang JIULI and Suzhou Novoprotein
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhejiang and Suzhou is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang JIULI Hi tech and Suzhou Novoprotein Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Novoprotein and Zhejiang JIULI 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 Zhejiang JIULI Hi tech 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 Zhejiang JIULI i.e., Zhejiang JIULI and Suzhou Novoprotein go up and down completely randomly.
Pair Corralation between Zhejiang JIULI and Suzhou Novoprotein
Assuming the 90 days trading horizon Zhejiang JIULI Hi tech is expected to generate 0.69 times more return on investment than Suzhou Novoprotein. However, Zhejiang JIULI Hi tech is 1.45 times less risky than Suzhou Novoprotein. It trades about 0.05 of its potential returns per unit of risk. Suzhou Novoprotein Scientific is currently generating about -0.06 per unit of risk. If you would invest 1,600 in Zhejiang JIULI Hi tech on October 16, 2024 and sell it today you would earn a total of 708.00 from holding Zhejiang JIULI Hi tech or generate 44.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang JIULI Hi tech vs. Suzhou Novoprotein Scientific
Performance |
| Timeline |
| Zhejiang JIULI Hi |
| Suzhou Novoprotein |
Zhejiang JIULI and Suzhou Novoprotein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang JIULI and Suzhou Novoprotein
The main advantage of trading using opposite Zhejiang JIULI and Suzhou Novoprotein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang JIULI 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.| Zhejiang JIULI vs. Fiberhome Telecommunication Technologies | Zhejiang JIULI vs. Mango Excellent Media | Zhejiang JIULI vs. Ciwen Media Co | Zhejiang JIULI vs. Beijing Bewinner Communications |
| Suzhou Novoprotein vs. Guilin Seamild Foods | Suzhou Novoprotein vs. Sinomach Automobile Co | Suzhou Novoprotein vs. HaiXin Foods Co | Suzhou Novoprotein vs. Xiamen Jihong Package |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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