Correlation Between Suzhou Novoprotein and Sino Platinum
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By analyzing existing cross correlation between Suzhou Novoprotein Scientific and Sino Platinum Metals Co, you can compare the effects of market volatilities on Suzhou Novoprotein and Sino Platinum 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 Sino Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and Sino Platinum.
Diversification Opportunities for Suzhou Novoprotein and Sino Platinum
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Suzhou and Sino is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and Sino Platinum Metals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Platinum Metals 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 Sino Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino Platinum Metals has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and Sino Platinum go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and Sino Platinum
Assuming the 90 days trading horizon Suzhou Novoprotein Scientific is expected to under-perform the Sino Platinum. In addition to that, Suzhou Novoprotein is 1.42 times more volatile than Sino Platinum Metals Co. It trades about -0.03 of its total potential returns per unit of risk. Sino Platinum Metals Co is currently generating about -0.02 per unit of volatility. If you would invest 1,407 in Sino Platinum Metals Co on August 25, 2024 and sell it today you would lose (14.00) from holding Sino Platinum Metals Co or give up 1.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Suzhou Novoprotein Scientific vs. Sino Platinum Metals Co
Performance |
| Timeline |
| Suzhou Novoprotein |
| Sino Platinum Metals |
Suzhou Novoprotein and Sino Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Novoprotein and Sino Platinum
The main advantage of trading using opposite Suzhou Novoprotein and Sino Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, Sino Platinum 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 Sino Platinum will offset losses from the drop in Sino Platinum's long position.The idea behind Suzhou Novoprotein Scientific and Sino Platinum Metals Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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