Correlation Between Suzhou Novoprotein and Zhejiang Weixing
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By analyzing existing cross correlation between Suzhou Novoprotein Scientific and Zhejiang Weixing New, you can compare the effects of market volatilities on Suzhou Novoprotein and Zhejiang Weixing 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 Zhejiang Weixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and Zhejiang Weixing.
Diversification Opportunities for Suzhou Novoprotein and Zhejiang Weixing
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Suzhou and Zhejiang is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and Zhejiang Weixing New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Weixing New 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 Zhejiang Weixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Weixing New has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and Zhejiang Weixing go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and Zhejiang Weixing
Assuming the 90 days trading horizon Suzhou Novoprotein Scientific is expected to under-perform the Zhejiang Weixing. In addition to that, Suzhou Novoprotein is 1.2 times more volatile than Zhejiang Weixing New. It trades about -0.06 of its total potential returns per unit of risk. Zhejiang Weixing New is currently generating about -0.03 per unit of volatility. If you would invest 1,952 in Zhejiang Weixing New on August 29, 2024 and sell it today you would lose (725.00) from holding Zhejiang Weixing New or give up 37.14% 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. Zhejiang Weixing New
Performance |
| Timeline |
| Suzhou Novoprotein |
| Zhejiang Weixing New |
Suzhou Novoprotein and Zhejiang Weixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Novoprotein and Zhejiang Weixing
The main advantage of trading using opposite Suzhou Novoprotein and Zhejiang Weixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, Zhejiang Weixing 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 Zhejiang Weixing will offset losses from the drop in Zhejiang Weixing's long position.| Suzhou Novoprotein vs. Nanjing Medlander Medical | Suzhou Novoprotein vs. Double Medical Technology | Suzhou Novoprotein vs. Touchstone International Medical | Suzhou Novoprotein vs. Changchun UP Optotech |
| Zhejiang Weixing vs. PetroChina Co Ltd | Zhejiang Weixing vs. China State Construction | Zhejiang Weixing vs. China Mobile Limited | Zhejiang Weixing vs. Industrial and Commercial |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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