Correlation Between Bank of China and Suzhou Novoprotein
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of China and Suzhou Novoprotein Scientific, you can compare the effects of market volatilities on Bank of China 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 Bank of China with a short position of Suzhou Novoprotein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Suzhou Novoprotein.
Diversification Opportunities for Bank of China and Suzhou Novoprotein
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and Suzhou is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Suzhou Novoprotein Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Novoprotein and Bank of China 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 Bank of China 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 Bank of China i.e., Bank of China and Suzhou Novoprotein go up and down completely randomly.
Pair Corralation between Bank of China and Suzhou Novoprotein
Assuming the 90 days trading horizon Bank of China is expected to generate 0.6 times more return on investment than Suzhou Novoprotein. However, Bank of China is 1.66 times less risky than Suzhou Novoprotein. It trades about 0.1 of its potential returns per unit of risk. Suzhou Novoprotein Scientific is currently generating about 0.03 per unit of risk. If you would invest 467.00 in Bank of China on September 27, 2024 and sell it today you would earn a total of 84.00 from holding Bank of China or generate 17.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Suzhou Novoprotein Scientific
Performance |
| Timeline |
| Bank of China |
| Suzhou Novoprotein |
Bank of China and Suzhou Novoprotein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Suzhou Novoprotein
The main advantage of trading using opposite Bank of China and Suzhou Novoprotein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China 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.| Bank of China vs. Industrial and Commercial | Bank of China vs. Kweichow Moutai Co | Bank of China vs. Agricultural Bank of | Bank of China vs. China Mobile Limited |
| Suzhou Novoprotein vs. Industrial and Commercial | Suzhou Novoprotein vs. Agricultural Bank of | Suzhou Novoprotein vs. China Construction Bank | Suzhou Novoprotein vs. Bank of China |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |