Correlation Between Suzhou Novoprotein and Guangzhou Zhujiang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Suzhou Novoprotein Scientific and Guangzhou Zhujiang Brewery, you can compare the effects of market volatilities on Suzhou Novoprotein and Guangzhou Zhujiang 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 Guangzhou Zhujiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and Guangzhou Zhujiang.
Diversification Opportunities for Suzhou Novoprotein and Guangzhou Zhujiang
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Suzhou and Guangzhou is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and Guangzhou Zhujiang Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Zhujiang 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 Guangzhou Zhujiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Zhujiang has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and Guangzhou Zhujiang go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and Guangzhou Zhujiang
Assuming the 90 days trading horizon Suzhou Novoprotein Scientific is expected to generate 1.58 times more return on investment than Guangzhou Zhujiang. However, Suzhou Novoprotein is 1.58 times more volatile than Guangzhou Zhujiang Brewery. It trades about 0.42 of its potential returns per unit of risk. Guangzhou Zhujiang Brewery is currently generating about 0.08 per unit of risk. If you would invest 3,126 in Suzhou Novoprotein Scientific on November 27, 2024 and sell it today you would earn a total of 353.00 from holding Suzhou Novoprotein Scientific or generate 11.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Novoprotein Scientific vs. Guangzhou Zhujiang Brewery
Performance |
| Timeline |
| Suzhou Novoprotein |
| Guangzhou Zhujiang |
Suzhou Novoprotein and Guangzhou Zhujiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Novoprotein and Guangzhou Zhujiang
The main advantage of trading using opposite Suzhou Novoprotein and Guangzhou Zhujiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, Guangzhou Zhujiang 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 Guangzhou Zhujiang will offset losses from the drop in Guangzhou Zhujiang's long position.| Suzhou Novoprotein vs. Qingdao Choho Industrial | Suzhou Novoprotein vs. GRIPM Advanced Materials | Suzhou Novoprotein vs. Guangzhou Haozhi Industrial | Suzhou Novoprotein vs. JCHX Mining Management |
| Guangzhou Zhujiang vs. Vanfund Urban Investment | Guangzhou Zhujiang vs. Suzhou Xingye Material | Guangzhou Zhujiang vs. Metro Investment Development | Guangzhou Zhujiang vs. Western Metal Materials |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |