Correlation Between Guilin Seamild and Suzhou Novoprotein
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By analyzing existing cross correlation between Guilin Seamild Foods and Suzhou Novoprotein Scientific, you can compare the effects of market volatilities on Guilin Seamild 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 Guilin Seamild with a short position of Suzhou Novoprotein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and Suzhou Novoprotein.
Diversification Opportunities for Guilin Seamild and Suzhou Novoprotein
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guilin and Suzhou is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods and Suzhou Novoprotein Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Novoprotein and Guilin Seamild 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 Guilin Seamild Foods 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 Guilin Seamild i.e., Guilin Seamild and Suzhou Novoprotein go up and down completely randomly.
Pair Corralation between Guilin Seamild and Suzhou Novoprotein
Assuming the 90 days trading horizon Guilin Seamild Foods is expected to generate 2.44 times more return on investment than Suzhou Novoprotein. However, Guilin Seamild is 2.44 times more volatile than Suzhou Novoprotein Scientific. It trades about 0.08 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 1,456 in Guilin Seamild Foods on October 30, 2024 and sell it today you would earn a total of 120.00 from holding Guilin Seamild Foods or generate 8.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guilin Seamild Foods vs. Suzhou Novoprotein Scientific
Performance |
| Timeline |
| Guilin Seamild Foods |
| Suzhou Novoprotein |
Guilin Seamild and Suzhou Novoprotein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and Suzhou Novoprotein
The main advantage of trading using opposite Guilin Seamild and Suzhou Novoprotein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild 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.| Guilin Seamild vs. Panda Financial Holding | Guilin Seamild vs. Biwin Storage Technology | Guilin Seamild vs. Hua Xia Bank | Guilin Seamild vs. East Money Information |
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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