Correlation Between Ningbo Ligong and Suzhou Novoprotein
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By analyzing existing cross correlation between Ningbo Ligong Online and Suzhou Novoprotein Scientific, you can compare the effects of market volatilities on Ningbo Ligong 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 Ningbo Ligong with a short position of Suzhou Novoprotein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Ligong and Suzhou Novoprotein.
Diversification Opportunities for Ningbo Ligong and Suzhou Novoprotein
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ningbo and Suzhou is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Ligong Online and Suzhou Novoprotein Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Novoprotein and Ningbo Ligong 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 Ningbo Ligong Online 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 Ningbo Ligong i.e., Ningbo Ligong and Suzhou Novoprotein go up and down completely randomly.
Pair Corralation between Ningbo Ligong and Suzhou Novoprotein
Assuming the 90 days trading horizon Ningbo Ligong Online is expected to generate 0.99 times more return on investment than Suzhou Novoprotein. However, Ningbo Ligong Online is 1.01 times less risky than Suzhou Novoprotein. It trades about 0.03 of its potential returns per unit of risk. Suzhou Novoprotein Scientific is currently generating about -0.04 per unit of risk. If you would invest 1,206 in Ningbo Ligong Online on September 14, 2024 and sell it today you would earn a total of 157.00 from holding Ningbo Ligong Online or generate 13.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Ligong Online vs. Suzhou Novoprotein Scientific
Performance |
| Timeline |
| Ningbo Ligong Online |
| Suzhou Novoprotein |
Ningbo Ligong and Suzhou Novoprotein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Ligong and Suzhou Novoprotein
The main advantage of trading using opposite Ningbo Ligong and Suzhou Novoprotein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Ligong 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.| Ningbo Ligong vs. China Petroleum Chemical | Ningbo Ligong vs. PetroChina Co Ltd | Ningbo Ligong vs. China State Construction | Ningbo Ligong vs. China Railway Group |
| Suzhou Novoprotein vs. Shenzhen MYS Environmental | Suzhou Novoprotein vs. Ningbo Ligong Online | Suzhou Novoprotein vs. Qiaoyin Environmental Tech | Suzhou Novoprotein vs. Nexchip Semiconductor Corp |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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