Correlation Between Xiamen Jihong and Suzhou Novoprotein
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By analyzing existing cross correlation between Xiamen Jihong Package and Suzhou Novoprotein Scientific, you can compare the effects of market volatilities on Xiamen Jihong 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 Xiamen Jihong with a short position of Suzhou Novoprotein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Jihong and Suzhou Novoprotein.
Diversification Opportunities for Xiamen Jihong and Suzhou Novoprotein
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and Suzhou is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Jihong Package and Suzhou Novoprotein Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Novoprotein and Xiamen Jihong 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 Xiamen Jihong Package 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 Xiamen Jihong i.e., Xiamen Jihong and Suzhou Novoprotein go up and down completely randomly.
Pair Corralation between Xiamen Jihong and Suzhou Novoprotein
Assuming the 90 days trading horizon Xiamen Jihong Package is expected to under-perform the Suzhou Novoprotein. In addition to that, Xiamen Jihong is 2.45 times more volatile than Suzhou Novoprotein Scientific. It trades about -0.15 of its total potential returns per unit of risk. Suzhou Novoprotein Scientific is currently generating about -0.27 per unit of volatility. If you would invest 3,625 in Suzhou Novoprotein Scientific on October 30, 2024 and sell it today you would lose (499.00) from holding Suzhou Novoprotein Scientific or give up 13.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Jihong Package vs. Suzhou Novoprotein Scientific
Performance |
| Timeline |
| Xiamen Jihong Package |
| Suzhou Novoprotein |
Xiamen Jihong and Suzhou Novoprotein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Jihong and Suzhou Novoprotein
The main advantage of trading using opposite Xiamen Jihong and Suzhou Novoprotein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Jihong 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.| Xiamen Jihong vs. Caihong Display Devices | Xiamen Jihong vs. Unisplendour Corp | Xiamen Jihong vs. Zhejiang JIULI Hi tech | Xiamen Jihong vs. Kuang Chi Technologies |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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