Correlation Between Suzhou Novoprotein and Linzhou Heavy
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By analyzing existing cross correlation between Suzhou Novoprotein Scientific and Linzhou Heavy Machinery, you can compare the effects of market volatilities on Suzhou Novoprotein and Linzhou Heavy 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 Linzhou Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and Linzhou Heavy.
Diversification Opportunities for Suzhou Novoprotein and Linzhou Heavy
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Suzhou and Linzhou is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and Linzhou Heavy Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linzhou Heavy Machinery 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 Linzhou Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linzhou Heavy Machinery has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and Linzhou Heavy go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and Linzhou Heavy
Assuming the 90 days trading horizon Suzhou Novoprotein Scientific is expected to under-perform the Linzhou Heavy. But the stock apears to be less risky and, when comparing its historical volatility, Suzhou Novoprotein Scientific is 1.29 times less risky than Linzhou Heavy. The stock trades about -0.05 of its potential returns per unit of risk. The Linzhou Heavy Machinery is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 253.00 in Linzhou Heavy Machinery on September 4, 2024 and sell it today you would earn a total of 199.00 from holding Linzhou Heavy Machinery or generate 78.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Suzhou Novoprotein Scientific vs. Linzhou Heavy Machinery
Performance |
| Timeline |
| Suzhou Novoprotein |
| Linzhou Heavy Machinery |
Suzhou Novoprotein and Linzhou Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Novoprotein and Linzhou Heavy
The main advantage of trading using opposite Suzhou Novoprotein and Linzhou Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, Linzhou Heavy 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 Linzhou Heavy will offset losses from the drop in Linzhou Heavy's long position.| Suzhou Novoprotein vs. Iat Automobile Technology | Suzhou Novoprotein vs. Dongfeng Automobile Co | Suzhou Novoprotein vs. Dawning Information Industry | Suzhou Novoprotein vs. CITIC Guoan Information |
| Linzhou Heavy vs. Chengdu Kanghua Biological | Linzhou Heavy vs. Beijing Wantai Biological | Linzhou Heavy vs. Suzhou Novoprotein Scientific | Linzhou Heavy vs. Aluminum Corp of |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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