Correlation Between Suzhou Novoprotein and LianChuang Electronic
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By analyzing existing cross correlation between Suzhou Novoprotein Scientific and LianChuang Electronic Technology, you can compare the effects of market volatilities on Suzhou Novoprotein and LianChuang Electronic 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 LianChuang Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and LianChuang Electronic.
Diversification Opportunities for Suzhou Novoprotein and LianChuang Electronic
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Suzhou and LianChuang is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and LianChuang Electronic Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LianChuang Electronic 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 LianChuang Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LianChuang Electronic has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and LianChuang Electronic go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and LianChuang Electronic
Assuming the 90 days trading horizon Suzhou Novoprotein Scientific is expected to generate 0.42 times more return on investment than LianChuang Electronic. However, Suzhou Novoprotein Scientific is 2.41 times less risky than LianChuang Electronic. It trades about -0.28 of its potential returns per unit of risk. LianChuang Electronic Technology is currently generating about -0.15 per unit of risk. If you would invest 3,352 in Suzhou Novoprotein Scientific on October 26, 2024 and sell it today you would lose (215.00) from holding Suzhou Novoprotein Scientific or give up 6.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Novoprotein Scientific vs. LianChuang Electronic Technolo
Performance |
| Timeline |
| Suzhou Novoprotein |
| LianChuang Electronic |
Suzhou Novoprotein and LianChuang Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Novoprotein and LianChuang Electronic
The main advantage of trading using opposite Suzhou Novoprotein and LianChuang Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, LianChuang Electronic 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 LianChuang Electronic will offset losses from the drop in LianChuang Electronic's long position.| Suzhou Novoprotein vs. Shanghai Xinhua Media | Suzhou Novoprotein vs. Goodwill E Health | Suzhou Novoprotein vs. Changjiang Publishing Media | Suzhou Novoprotein vs. Guangzhou Jinyi Media |
| LianChuang Electronic vs. Chengdu Kanghua Biological | LianChuang Electronic vs. Suzhou Novoprotein Scientific | LianChuang Electronic vs. Aluminum Corp of | LianChuang Electronic vs. COL Digital Publishing |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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