Correlation Between Suzhou Novoprotein and Datang HuaYin
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By analyzing existing cross correlation between Suzhou Novoprotein Scientific and Datang HuaYin Electric, you can compare the effects of market volatilities on Suzhou Novoprotein and Datang HuaYin 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 Datang HuaYin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and Datang HuaYin.
Diversification Opportunities for Suzhou Novoprotein and Datang HuaYin
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Suzhou and Datang is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and Datang HuaYin Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datang HuaYin Electric 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 Datang HuaYin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datang HuaYin Electric has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and Datang HuaYin go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and Datang HuaYin
Assuming the 90 days trading horizon Suzhou Novoprotein Scientific is expected to generate 1.14 times more return on investment than Datang HuaYin. However, Suzhou Novoprotein is 1.14 times more volatile than Datang HuaYin Electric. It trades about 0.11 of its potential returns per unit of risk. Datang HuaYin Electric is currently generating about 0.12 per unit of risk. If you would invest 3,037 in Suzhou Novoprotein Scientific on September 3, 2024 and sell it today you would earn a total of 588.00 from holding Suzhou Novoprotein Scientific or generate 19.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Novoprotein Scientific vs. Datang HuaYin Electric
Performance |
| Timeline |
| Suzhou Novoprotein |
| Datang HuaYin Electric |
Suzhou Novoprotein and Datang HuaYin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Novoprotein and Datang HuaYin
The main advantage of trading using opposite Suzhou Novoprotein and Datang HuaYin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, Datang HuaYin 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 Datang HuaYin will offset losses from the drop in Datang HuaYin's long position.| Suzhou Novoprotein vs. Henan Shuanghui Investment | Suzhou Novoprotein vs. HeBei Jinniu Chemical | Suzhou Novoprotein vs. Kunwu Jiuding Investment | Suzhou Novoprotein vs. Ningxia Younglight Chemicals |
| Datang HuaYin vs. Industrial and Commercial | Datang HuaYin vs. Agricultural Bank of | Datang HuaYin vs. China Construction Bank | Datang HuaYin vs. Bank of China |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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