Correlation Between Suzhou Novoprotein and Guangzhou Haozhi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Suzhou Novoprotein Scientific and Guangzhou Haozhi Industrial, you can compare the effects of market volatilities on Suzhou Novoprotein and Guangzhou Haozhi 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 Guangzhou Haozhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and Guangzhou Haozhi.
Diversification Opportunities for Suzhou Novoprotein and Guangzhou Haozhi
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Suzhou and Guangzhou is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and Guangzhou Haozhi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haozhi Ind 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 Guangzhou Haozhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haozhi Ind has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and Guangzhou Haozhi go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and Guangzhou Haozhi
Assuming the 90 days trading horizon Suzhou Novoprotein Scientific is expected to under-perform the Guangzhou Haozhi. But the stock apears to be less risky and, when comparing its historical volatility, Suzhou Novoprotein Scientific is 2.3 times less risky than Guangzhou Haozhi. The stock trades about -0.08 of its potential returns per unit of risk. The Guangzhou Haozhi Industrial is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 1,886 in Guangzhou Haozhi Industrial on September 13, 2024 and sell it today you would earn a total of 624.00 from holding Guangzhou Haozhi Industrial or generate 33.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Novoprotein Scientific vs. Guangzhou Haozhi Industrial
Performance |
| Timeline |
| Suzhou Novoprotein |
| Guangzhou Haozhi Ind |
Suzhou Novoprotein and Guangzhou Haozhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Novoprotein and Guangzhou Haozhi
The main advantage of trading using opposite Suzhou Novoprotein and Guangzhou Haozhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, Guangzhou Haozhi 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 Guangzhou Haozhi will offset losses from the drop in Guangzhou Haozhi's long position.| Suzhou Novoprotein vs. Hang Xiao Steel | Suzhou Novoprotein vs. Vanfund Urban Investment | Suzhou Novoprotein vs. Harbin Air Conditioning | Suzhou Novoprotein vs. Beijing SPC Environment |
| Guangzhou Haozhi vs. Industrial and Commercial | Guangzhou Haozhi vs. Kweichow Moutai Co | Guangzhou Haozhi vs. Agricultural Bank of | Guangzhou Haozhi vs. China Mobile Limited |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |