Correlation Between Suzhou Novoprotein and Hunan Mendale
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By analyzing existing cross correlation between Suzhou Novoprotein Scientific and Hunan Mendale Hometextile, you can compare the effects of market volatilities on Suzhou Novoprotein and Hunan Mendale 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 Hunan Mendale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and Hunan Mendale.
Diversification Opportunities for Suzhou Novoprotein and Hunan Mendale
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Suzhou and Hunan is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and Hunan Mendale Hometextile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Mendale Hometextile 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 Hunan Mendale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Mendale Hometextile has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and Hunan Mendale go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and Hunan Mendale
Assuming the 90 days trading horizon Suzhou Novoprotein Scientific is expected to under-perform the Hunan Mendale. But the stock apears to be less risky and, when comparing its historical volatility, Suzhou Novoprotein Scientific is 1.07 times less risky than Hunan Mendale. The stock trades about -0.05 of its potential returns per unit of risk. The Hunan Mendale Hometextile is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 474.00 in Hunan Mendale Hometextile on September 3, 2024 and sell it today you would lose (154.00) from holding Hunan Mendale Hometextile or give up 32.49% 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. Hunan Mendale Hometextile
Performance |
| Timeline |
| Suzhou Novoprotein |
| Hunan Mendale Hometextile |
Suzhou Novoprotein and Hunan Mendale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Novoprotein and Hunan Mendale
The main advantage of trading using opposite Suzhou Novoprotein and Hunan Mendale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, Hunan Mendale 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 Hunan Mendale will offset losses from the drop in Hunan Mendale's long position.| Suzhou Novoprotein vs. Henan Shuanghui Investment | Suzhou Novoprotein vs. HeBei Jinniu Chemical | Suzhou Novoprotein vs. Kunwu Jiuding Investment | Suzhou Novoprotein vs. Ningxia Younglight Chemicals |
| Hunan Mendale vs. PetroChina Co Ltd | Hunan Mendale vs. China Mobile Limited | Hunan Mendale vs. Industrial and Commercial | Hunan Mendale vs. China Life Insurance |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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