Correlation Between Suzhou Novoprotein and Zoje Resources
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By analyzing existing cross correlation between Suzhou Novoprotein Scientific and Zoje Resources Investment, you can compare the effects of market volatilities on Suzhou Novoprotein and Zoje Resources 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 Suzhou Novoprotein with a short position of Zoje Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and Zoje Resources.
Diversification Opportunities for Suzhou Novoprotein and Zoje Resources
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Suzhou and Zoje is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and Zoje Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoje Resources Investment and Suzhou Novoprotein 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 Suzhou Novoprotein Scientific are associated (or correlated) with Zoje Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoje Resources Investment has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and Zoje Resources go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and Zoje Resources
Assuming the 90 days trading horizon Suzhou Novoprotein Scientific is expected to under-perform the Zoje Resources. But the stock apears to be less risky and, when comparing its historical volatility, Suzhou Novoprotein Scientific is 2.02 times less risky than Zoje Resources. The stock trades about -0.12 of its potential returns per unit of risk. The Zoje Resources Investment is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 273.00 in Zoje Resources Investment on September 12, 2024 and sell it today you would earn a total of 52.00 from holding Zoje Resources Investment or generate 19.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Novoprotein Scientific vs. Zoje Resources Investment
Performance |
| Timeline |
| Suzhou Novoprotein |
| Zoje Resources Investment |
Suzhou Novoprotein and Zoje Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Novoprotein and Zoje Resources
The main advantage of trading using opposite Suzhou Novoprotein and Zoje Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, Zoje Resources 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 Zoje Resources will offset losses from the drop in Zoje Resources' long position.| Suzhou Novoprotein vs. Shanghai Shuixing Home | Suzhou Novoprotein vs. Markor International Home | Suzhou Novoprotein vs. Qumei Furniture Group | Suzhou Novoprotein vs. Xinhua Winshare Publishing |
| Zoje Resources vs. Agricultural Bank of | Zoje Resources vs. Industrial and Commercial | Zoje Resources vs. Bank of China | Zoje Resources vs. PetroChina Co Ltd |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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