Correlation Between Suzhou Novoprotein and Ningbo MedicalSystem
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By analyzing existing cross correlation between Suzhou Novoprotein Scientific and Ningbo MedicalSystem Biotechnology, you can compare the effects of market volatilities on Suzhou Novoprotein and Ningbo MedicalSystem 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 Ningbo MedicalSystem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and Ningbo MedicalSystem.
Diversification Opportunities for Suzhou Novoprotein and Ningbo MedicalSystem
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Suzhou and Ningbo is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and Ningbo MedicalSystem Biotechno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo MedicalSystem 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 Ningbo MedicalSystem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo MedicalSystem has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and Ningbo MedicalSystem go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and Ningbo MedicalSystem
Assuming the 90 days trading horizon Suzhou Novoprotein is expected to generate 1.4 times less return on investment than Ningbo MedicalSystem. But when comparing it to its historical volatility, Suzhou Novoprotein Scientific is 1.03 times less risky than Ningbo MedicalSystem. It trades about 0.12 of its potential returns per unit of risk. Ningbo MedicalSystem Biotechnology is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,082 in Ningbo MedicalSystem Biotechnology on September 4, 2024 and sell it today you would earn a total of 95.00 from holding Ningbo MedicalSystem Biotechnology or generate 8.78% 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. Ningbo MedicalSystem Biotechno
Performance |
| Timeline |
| Suzhou Novoprotein |
| Ningbo MedicalSystem |
Suzhou Novoprotein and Ningbo MedicalSystem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Novoprotein and Ningbo MedicalSystem
The main advantage of trading using opposite Suzhou Novoprotein and Ningbo MedicalSystem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, Ningbo MedicalSystem 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 Ningbo MedicalSystem will offset losses from the drop in Ningbo MedicalSystem'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 |
| Ningbo MedicalSystem vs. Kweichow Moutai Co | Ningbo MedicalSystem vs. Shenzhen Mindray Bio Medical | Ningbo MedicalSystem vs. Jiangsu Pacific Quartz | Ningbo MedicalSystem vs. G bits Network Technology |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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