Correlation Between Suzhou Novoprotein and Chengdu Kanghua
Specify exactly 2 symbols:
By analyzing existing cross correlation between Suzhou Novoprotein Scientific and Chengdu Kanghua Biological, you can compare the effects of market volatilities on Suzhou Novoprotein and Chengdu Kanghua 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 Chengdu Kanghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and Chengdu Kanghua.
Diversification Opportunities for Suzhou Novoprotein and Chengdu Kanghua
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Suzhou and Chengdu is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and Chengdu Kanghua Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Kanghua Biol 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 Chengdu Kanghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Kanghua Biol has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and Chengdu Kanghua go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and Chengdu Kanghua
Assuming the 90 days trading horizon Suzhou Novoprotein Scientific is expected to under-perform the Chengdu Kanghua. But the stock apears to be less risky and, when comparing its historical volatility, Suzhou Novoprotein Scientific is 1.22 times less risky than Chengdu Kanghua. The stock trades about -0.2 of its potential returns per unit of risk. The Chengdu Kanghua Biological is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 5,280 in Chengdu Kanghua Biological on November 5, 2024 and sell it today you would lose (154.00) from holding Chengdu Kanghua Biological or give up 2.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Novoprotein Scientific vs. Chengdu Kanghua Biological
Performance |
| Timeline |
| Suzhou Novoprotein |
| Chengdu Kanghua Biol |
Suzhou Novoprotein and Chengdu Kanghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Novoprotein and Chengdu Kanghua
The main advantage of trading using opposite Suzhou Novoprotein and Chengdu Kanghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, Chengdu Kanghua 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 Chengdu Kanghua will offset losses from the drop in Chengdu Kanghua's long position.| Suzhou Novoprotein vs. Threes Company Media | Suzhou Novoprotein vs. China Publishing Media | Suzhou Novoprotein vs. Huizhou Speed Wireless | Suzhou Novoprotein vs. Mango Excellent Media |
| Chengdu Kanghua vs. Zhejiang Huatong Meat | Chengdu Kanghua vs. Jiangsu Financial Leasing | Chengdu Kanghua vs. Hubeiyichang Transportation Group | Chengdu Kanghua vs. China Sports Industry |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |