Correlation Between Suzhou Novoprotein and Ningbo Bohui
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By analyzing existing cross correlation between Suzhou Novoprotein Scientific and Ningbo Bohui Chemical, you can compare the effects of market volatilities on Suzhou Novoprotein and Ningbo Bohui 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 Bohui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and Ningbo Bohui.
Diversification Opportunities for Suzhou Novoprotein and Ningbo Bohui
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Suzhou and Ningbo is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and Ningbo Bohui Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Bohui Chemical 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 Bohui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Bohui Chemical has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and Ningbo Bohui go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and Ningbo Bohui
Assuming the 90 days trading horizon Suzhou Novoprotein Scientific is expected to generate 0.9 times more return on investment than Ningbo Bohui. However, Suzhou Novoprotein Scientific is 1.11 times less risky than Ningbo Bohui. It trades about 0.09 of its potential returns per unit of risk. Ningbo Bohui Chemical is currently generating about 0.03 per unit of risk. If you would invest 3,476 in Suzhou Novoprotein Scientific on September 1, 2024 and sell it today you would earn a total of 149.00 from holding Suzhou Novoprotein Scientific or generate 4.29% 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 Bohui Chemical
Performance |
| Timeline |
| Suzhou Novoprotein |
| Ningbo Bohui Chemical |
Suzhou Novoprotein and Ningbo Bohui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Novoprotein and Ningbo Bohui
The main advantage of trading using opposite Suzhou Novoprotein and Ningbo Bohui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, Ningbo Bohui 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 Bohui will offset losses from the drop in Ningbo Bohui's long position.| Suzhou Novoprotein vs. Ping An Insurance | Suzhou Novoprotein vs. Harbin Air Conditioning | Suzhou Novoprotein vs. Ningbo Tech Bank Co | Suzhou Novoprotein vs. Peoples Insurance of |
| Ningbo Bohui vs. Zhejiang Kingland Pipeline | Ningbo Bohui vs. ADAMA | Ningbo Bohui vs. Shanghai Lingyun Industries | Ningbo Bohui vs. Changchun Faway Automobile |
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 Positions Ratings module to 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.
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