Correlation Between Suzhou Novoprotein and Shenzhen Longsys
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By analyzing existing cross correlation between Suzhou Novoprotein Scientific and Shenzhen Longsys Electronics, you can compare the effects of market volatilities on Suzhou Novoprotein and Shenzhen Longsys 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 Shenzhen Longsys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and Shenzhen Longsys.
Diversification Opportunities for Suzhou Novoprotein and Shenzhen Longsys
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Suzhou and Shenzhen is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and Shenzhen Longsys Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Longsys Ele 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 Shenzhen Longsys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Longsys Ele has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and Shenzhen Longsys go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and Shenzhen Longsys
Assuming the 90 days trading horizon Suzhou Novoprotein Scientific is expected to generate 0.78 times more return on investment than Shenzhen Longsys. However, Suzhou Novoprotein Scientific is 1.28 times less risky than Shenzhen Longsys. It trades about -0.09 of its potential returns per unit of risk. Shenzhen Longsys Electronics is currently generating about -0.1 per unit of risk. If you would invest 3,642 in Suzhou Novoprotein Scientific on August 29, 2024 and sell it today you would lose (208.00) from holding Suzhou Novoprotein Scientific or give up 5.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Suzhou Novoprotein Scientific vs. Shenzhen Longsys Electronics
Performance |
| Timeline |
| Suzhou Novoprotein |
| Shenzhen Longsys Ele |
Suzhou Novoprotein and Shenzhen Longsys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Novoprotein and Shenzhen Longsys
The main advantage of trading using opposite Suzhou Novoprotein and Shenzhen Longsys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, Shenzhen Longsys 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 Shenzhen Longsys will offset losses from the drop in Shenzhen Longsys' long position.| Suzhou Novoprotein vs. Vanfund Urban Investment | Suzhou Novoprotein vs. Luyin Investment Group | Suzhou Novoprotein vs. Hunan Investment Group | Suzhou Novoprotein vs. Shuhua Sports Co |
| Shenzhen Longsys vs. Guangzhou Ruoyuchen Information | Shenzhen Longsys vs. Cofoe Medical Technology | Shenzhen Longsys vs. Northking Information Technology | Shenzhen Longsys vs. Xian International Medical |
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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