Correlation Between Shanghai Pudong and Suzhou Novoprotein
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By analyzing existing cross correlation between Shanghai Pudong Development and Suzhou Novoprotein Scientific, you can compare the effects of market volatilities on Shanghai Pudong 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 Shanghai Pudong with a short position of Suzhou Novoprotein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Pudong and Suzhou Novoprotein.
Diversification Opportunities for Shanghai Pudong and Suzhou Novoprotein
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shanghai and Suzhou is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Pudong Development and Suzhou Novoprotein Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Novoprotein and Shanghai Pudong 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 Shanghai Pudong Development 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 Shanghai Pudong i.e., Shanghai Pudong and Suzhou Novoprotein go up and down completely randomly.
Pair Corralation between Shanghai Pudong and Suzhou Novoprotein
Assuming the 90 days trading horizon Shanghai Pudong Development is expected to generate 0.49 times more return on investment than Suzhou Novoprotein. However, Shanghai Pudong Development is 2.03 times less risky than Suzhou Novoprotein. It trades about 0.14 of its potential returns per unit of risk. Suzhou Novoprotein Scientific is currently generating about -0.02 per unit of risk. If you would invest 671.00 in Shanghai Pudong Development on October 20, 2024 and sell it today you would earn a total of 356.00 from holding Shanghai Pudong Development or generate 53.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Pudong Development vs. Suzhou Novoprotein Scientific
Performance |
| Timeline |
| Shanghai Pudong Deve |
| Suzhou Novoprotein |
Shanghai Pudong and Suzhou Novoprotein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Pudong and Suzhou Novoprotein
The main advantage of trading using opposite Shanghai Pudong and Suzhou Novoprotein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Pudong 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.| Shanghai Pudong vs. Changjiang Publishing Media | Shanghai Pudong vs. Guangdong Wens Foodstuff | Shanghai Pudong vs. Chengdu B ray Media | Shanghai Pudong vs. Great Sun Foods 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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