Correlation Between Harbin Air and Suzhou Novoprotein
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By analyzing existing cross correlation between Harbin Air Conditioning and Suzhou Novoprotein Scientific, you can compare the effects of market volatilities on Harbin Air 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 Harbin Air with a short position of Suzhou Novoprotein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Air and Suzhou Novoprotein.
Diversification Opportunities for Harbin Air and Suzhou Novoprotein
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Harbin and Suzhou is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Air Conditioning and Suzhou Novoprotein Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Novoprotein and Harbin Air 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 Harbin Air Conditioning 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 Harbin Air i.e., Harbin Air and Suzhou Novoprotein go up and down completely randomly.
Pair Corralation between Harbin Air and Suzhou Novoprotein
Assuming the 90 days trading horizon Harbin Air is expected to generate 1.43 times less return on investment than Suzhou Novoprotein. But when comparing it to its historical volatility, Harbin Air Conditioning is 1.1 times less risky than Suzhou Novoprotein. It trades about 0.07 of its potential returns per unit of risk. Suzhou Novoprotein Scientific is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,476 in Suzhou Novoprotein Scientific on September 1, 2024 and sell it today you would earn a total of 149.00 from holding Suzhou Novoprotein Scientific or generate 4.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Air Conditioning vs. Suzhou Novoprotein Scientific
Performance |
| Timeline |
| Harbin Air Conditioning |
| Suzhou Novoprotein |
Harbin Air and Suzhou Novoprotein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Air and Suzhou Novoprotein
The main advantage of trading using opposite Harbin Air and Suzhou Novoprotein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Air 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.| Harbin Air vs. Industrial and Commercial | Harbin Air vs. Agricultural Bank of | Harbin Air vs. China Construction Bank | Harbin Air vs. Bank of China |
| Suzhou Novoprotein vs. Ping An Insurance | Suzhou Novoprotein vs. Harbin Air Conditioning | Suzhou Novoprotein vs. Ningbo Tech Bank Co | Suzhou Novoprotein vs. Peoples Insurance of |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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