Correlation Between Suzhou Novoprotein and Weihai Honglin
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By analyzing existing cross correlation between Suzhou Novoprotein Scientific and Weihai Honglin Electronic, you can compare the effects of market volatilities on Suzhou Novoprotein and Weihai Honglin 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 Weihai Honglin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and Weihai Honglin.
Diversification Opportunities for Suzhou Novoprotein and Weihai Honglin
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Suzhou and Weihai is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and Weihai Honglin Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weihai Honglin Electronic 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 Weihai Honglin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weihai Honglin Electronic has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and Weihai Honglin go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and Weihai Honglin
Assuming the 90 days trading horizon Suzhou Novoprotein Scientific is expected to generate 1.23 times more return on investment than Weihai Honglin. However, Suzhou Novoprotein is 1.23 times more volatile than Weihai Honglin Electronic. It trades about -0.09 of its potential returns per unit of risk. Weihai Honglin Electronic is currently generating about -0.18 per unit of risk. If you would invest 3,642 in Suzhou Novoprotein Scientific on August 28, 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Novoprotein Scientific vs. Weihai Honglin Electronic
Performance |
| Timeline |
| Suzhou Novoprotein |
| Weihai Honglin Electronic |
Suzhou Novoprotein and Weihai Honglin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Novoprotein and Weihai Honglin
The main advantage of trading using opposite Suzhou Novoprotein and Weihai Honglin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, Weihai Honglin 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 Weihai Honglin will offset losses from the drop in Weihai Honglin's 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 |
| Weihai Honglin vs. Kweichow Moutai Co | Weihai Honglin vs. Shenzhen Mindray Bio Medical | Weihai Honglin vs. Jiangsu Pacific Quartz | Weihai Honglin vs. G bits Network Technology |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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