Correlation Between Suzhou Novoprotein and Jinhe Biotechnology
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By analyzing existing cross correlation between Suzhou Novoprotein Scientific and Jinhe Biotechnology Co, you can compare the effects of market volatilities on Suzhou Novoprotein and Jinhe Biotechnology 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 Jinhe Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and Jinhe Biotechnology.
Diversification Opportunities for Suzhou Novoprotein and Jinhe Biotechnology
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Suzhou and Jinhe is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and Jinhe Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhe Biotechnology 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 Jinhe Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhe Biotechnology has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and Jinhe Biotechnology go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and Jinhe Biotechnology
Assuming the 90 days trading horizon Suzhou Novoprotein Scientific is expected to under-perform the Jinhe Biotechnology. In addition to that, Suzhou Novoprotein is 1.31 times more volatile than Jinhe Biotechnology Co. It trades about -0.05 of its total potential returns per unit of risk. Jinhe Biotechnology Co is currently generating about 0.0 per unit of volatility. If you would invest 522.00 in Jinhe Biotechnology Co on September 3, 2024 and sell it today you would lose (63.00) from holding Jinhe Biotechnology Co or give up 12.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Novoprotein Scientific vs. Jinhe Biotechnology Co
Performance |
| Timeline |
| Suzhou Novoprotein |
| Jinhe Biotechnology |
Suzhou Novoprotein and Jinhe Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Novoprotein and Jinhe Biotechnology
The main advantage of trading using opposite Suzhou Novoprotein and Jinhe Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, Jinhe Biotechnology 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 Jinhe Biotechnology will offset losses from the drop in Jinhe Biotechnology'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 |
| Jinhe Biotechnology vs. Chengdu Kanghua Biological | Jinhe Biotechnology vs. Beijing Wantai Biological | Jinhe Biotechnology vs. Suzhou Novoprotein Scientific | Jinhe Biotechnology 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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