Correlation Between Suzhou Novoprotein and AVCON Information
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By analyzing existing cross correlation between Suzhou Novoprotein Scientific and AVCON Information Tech, you can compare the effects of market volatilities on Suzhou Novoprotein and AVCON Information 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 AVCON Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and AVCON Information.
Diversification Opportunities for Suzhou Novoprotein and AVCON Information
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Suzhou and AVCON is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and AVCON Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVCON Information Tech 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 AVCON Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVCON Information Tech has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and AVCON Information go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and AVCON Information
Assuming the 90 days trading horizon Suzhou Novoprotein Scientific is expected to under-perform the AVCON Information. But the stock apears to be less risky and, when comparing its historical volatility, Suzhou Novoprotein Scientific is 1.47 times less risky than AVCON Information. The stock trades about -0.09 of its potential returns per unit of risk. The AVCON Information Tech is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 444.00 in AVCON Information Tech on August 27, 2024 and sell it today you would earn a total of 28.00 from holding AVCON Information Tech or generate 6.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Novoprotein Scientific vs. AVCON Information Tech
Performance |
| Timeline |
| Suzhou Novoprotein |
| AVCON Information Tech |
Suzhou Novoprotein and AVCON Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Novoprotein and AVCON Information
The main advantage of trading using opposite Suzhou Novoprotein and AVCON Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, AVCON Information 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 AVCON Information will offset losses from the drop in AVCON Information's long position.| Suzhou Novoprotein vs. Tianjin Hi Tech Development | Suzhou Novoprotein vs. Impulse Qingdao Health | Suzhou Novoprotein vs. Mingchen Health Co | Suzhou Novoprotein vs. Lotus Health Group |
| AVCON Information vs. Shenzhen MYS Environmental | AVCON Information vs. AVIC Fund Management | AVCON Information vs. Shenzhen Bingchuan Network | AVCON Information vs. Penghua Shenzhen Energy |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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