Correlation Between Guangdong Shenglu and Suzhou Novoprotein
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Suzhou Novoprotein Scientific, you can compare the effects of market volatilities on Guangdong Shenglu 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 Guangdong Shenglu with a short position of Suzhou Novoprotein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Suzhou Novoprotein.
Diversification Opportunities for Guangdong Shenglu and Suzhou Novoprotein
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Suzhou is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and Suzhou Novoprotein Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Novoprotein and Guangdong Shenglu 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 Guangdong Shenglu Telecommunication 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 Guangdong Shenglu i.e., Guangdong Shenglu and Suzhou Novoprotein go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Suzhou Novoprotein
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to generate 1.16 times more return on investment than Suzhou Novoprotein. However, Guangdong Shenglu is 1.16 times more volatile than Suzhou Novoprotein Scientific. It trades about 0.05 of its potential returns per unit of risk. Suzhou Novoprotein Scientific is currently generating about 0.0 per unit of risk. If you would invest 611.00 in Guangdong Shenglu Telecommunication on August 25, 2024 and sell it today you would earn a total of 91.00 from holding Guangdong Shenglu Telecommunication or generate 14.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Suzhou Novoprotein Scientific
Performance |
| Timeline |
| Guangdong Shenglu |
| Suzhou Novoprotein |
Guangdong Shenglu and Suzhou Novoprotein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Suzhou Novoprotein
The main advantage of trading using opposite Guangdong Shenglu and Suzhou Novoprotein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu 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.| Guangdong Shenglu vs. Shenzhen MYS Environmental | Guangdong Shenglu vs. AVIC Fund Management | Guangdong Shenglu vs. Shenzhen Bingchuan Network | Guangdong Shenglu vs. Penghua Shenzhen Energy |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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