Correlation Between HaiXin Foods and Suzhou Novoprotein
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By analyzing existing cross correlation between HaiXin Foods Co and Suzhou Novoprotein Scientific, you can compare the effects of market volatilities on HaiXin Foods 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 HaiXin Foods with a short position of Suzhou Novoprotein. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Suzhou Novoprotein.
Diversification Opportunities for HaiXin Foods and Suzhou Novoprotein
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HaiXin and Suzhou is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Suzhou Novoprotein Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Novoprotein and HaiXin Foods 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 HaiXin Foods Co 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 HaiXin Foods i.e., HaiXin Foods and Suzhou Novoprotein go up and down completely randomly.
Pair Corralation between HaiXin Foods and Suzhou Novoprotein
Assuming the 90 days trading horizon HaiXin Foods Co is expected to generate 3.76 times more return on investment than Suzhou Novoprotein. However, HaiXin Foods is 3.76 times more volatile than Suzhou Novoprotein Scientific. It trades about -0.04 of its potential returns per unit of risk. Suzhou Novoprotein Scientific is currently generating about -0.27 per unit of risk. If you would invest 461.00 in HaiXin Foods Co on October 30, 2024 and sell it today you would lose (61.00) from holding HaiXin Foods Co or give up 13.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HaiXin Foods Co vs. Suzhou Novoprotein Scientific
Performance |
| Timeline |
| HaiXin Foods |
| Suzhou Novoprotein |
HaiXin Foods and Suzhou Novoprotein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Suzhou Novoprotein
The main advantage of trading using opposite HaiXin Foods and Suzhou Novoprotein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods 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.| HaiXin Foods vs. Shandong Sinoglory Health | HaiXin Foods vs. Anhui Huaheng Biotechnology | HaiXin Foods vs. Jiangsu GDK Biotechnology | HaiXin Foods vs. Heren Health Co |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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