Correlation Between Suzhou Novoprotein and Beijing Kaiwen
Specify exactly 2 symbols:
By analyzing existing cross correlation between Suzhou Novoprotein Scientific and Beijing Kaiwen Education, you can compare the effects of market volatilities on Suzhou Novoprotein and Beijing Kaiwen 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 Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and Beijing Kaiwen.
Diversification Opportunities for Suzhou Novoprotein and Beijing Kaiwen
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Suzhou and Beijing is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and Beijing Kaiwen Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Kaiwen Education 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 Beijing Kaiwen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Kaiwen Education has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and Beijing Kaiwen
Assuming the 90 days trading horizon Suzhou Novoprotein Scientific is expected to generate 0.55 times more return on investment than Beijing Kaiwen. However, Suzhou Novoprotein Scientific is 1.81 times less risky than Beijing Kaiwen. It trades about -0.03 of its potential returns per unit of risk. Beijing Kaiwen Education is currently generating about -0.02 per unit of risk. If you would invest 3,531 in Suzhou Novoprotein Scientific on August 25, 2024 and sell it today you would lose (86.00) from holding Suzhou Novoprotein Scientific or give up 2.44% 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. Beijing Kaiwen Education
Performance |
| Timeline |
| Suzhou Novoprotein |
| Beijing Kaiwen Education |
Suzhou Novoprotein and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Novoprotein and Beijing Kaiwen
The main advantage of trading using opposite Suzhou Novoprotein and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, Beijing Kaiwen 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 Beijing Kaiwen will offset losses from the drop in Beijing Kaiwen's long position.| Suzhou Novoprotein vs. Shenzhen MYS Environmental | Suzhou Novoprotein vs. City Development Environment | Suzhou Novoprotein vs. Gansu Jiu Steel | Suzhou Novoprotein vs. Dongfeng Automobile Co |
| Beijing Kaiwen vs. Industrial and Commercial | Beijing Kaiwen vs. Agricultural Bank of | Beijing Kaiwen vs. China Construction Bank | Beijing Kaiwen vs. Bank of China |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |