Correlation Between Suzhou Novoprotein and Wintao Communications
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By analyzing existing cross correlation between Suzhou Novoprotein Scientific and Wintao Communications Co, you can compare the effects of market volatilities on Suzhou Novoprotein and Wintao Communications 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 Wintao Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and Wintao Communications.
Diversification Opportunities for Suzhou Novoprotein and Wintao Communications
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suzhou and Wintao is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and Wintao Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintao Communications 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 Wintao Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintao Communications has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and Wintao Communications go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and Wintao Communications
Assuming the 90 days trading horizon Suzhou Novoprotein Scientific is expected to generate 0.65 times more return on investment than Wintao Communications. However, Suzhou Novoprotein Scientific is 1.53 times less risky than Wintao Communications. It trades about -0.05 of its potential returns per unit of risk. Wintao Communications Co is currently generating about -0.05 per unit of risk. If you would invest 3,435 in Suzhou Novoprotein Scientific on October 14, 2024 and sell it today you would lose (252.00) from holding Suzhou Novoprotein Scientific or give up 7.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Novoprotein Scientific vs. Wintao Communications Co
Performance |
| Timeline |
| Suzhou Novoprotein |
| Wintao Communications |
Suzhou Novoprotein and Wintao Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Novoprotein and Wintao Communications
The main advantage of trading using opposite Suzhou Novoprotein and Wintao Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, Wintao Communications 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 Wintao Communications will offset losses from the drop in Wintao Communications' long position.| Suzhou Novoprotein vs. Zhengzhou Coal Mining | Suzhou Novoprotein vs. Guangdong Jingyi Metal | Suzhou Novoprotein vs. Jiangsu Broadcasting Cable | Suzhou Novoprotein vs. Longjian Road Bridge |
| Wintao Communications vs. Nuode Investment Co | Wintao Communications vs. BTG Hotels Group | Wintao Communications vs. Success Electronics | Wintao Communications vs. Henan Shuanghui Investment |
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 Stocks Directory module to find actively traded stocks across global markets.
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