Correlation Between Suzhou Novoprotein and China Yangtze
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By analyzing existing cross correlation between Suzhou Novoprotein Scientific and China Yangtze Power, you can compare the effects of market volatilities on Suzhou Novoprotein and China Yangtze 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 China Yangtze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and China Yangtze.
Diversification Opportunities for Suzhou Novoprotein and China Yangtze
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Suzhou and China is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and China Yangtze Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Yangtze Power 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 China Yangtze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Yangtze Power has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and China Yangtze go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and China Yangtze
Assuming the 90 days trading horizon Suzhou Novoprotein Scientific is expected to under-perform the China Yangtze. In addition to that, Suzhou Novoprotein is 2.66 times more volatile than China Yangtze Power. It trades about -0.06 of its total potential returns per unit of risk. China Yangtze Power is currently generating about 0.07 per unit of volatility. If you would invest 2,010 in China Yangtze Power on August 29, 2024 and sell it today you would earn a total of 729.00 from holding China Yangtze Power or generate 36.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Novoprotein Scientific vs. China Yangtze Power
Performance |
| Timeline |
| Suzhou Novoprotein |
| China Yangtze Power |
Suzhou Novoprotein and China Yangtze Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Novoprotein and China Yangtze
The main advantage of trading using opposite Suzhou Novoprotein and China Yangtze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, China Yangtze 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 China Yangtze will offset losses from the drop in China Yangtze's long position.| Suzhou Novoprotein vs. Nanjing Medlander Medical | Suzhou Novoprotein vs. Double Medical Technology | Suzhou Novoprotein vs. Touchstone International Medical | Suzhou Novoprotein vs. Changchun UP Optotech |
| China Yangtze vs. Guizhou BroadcastingTV Info | China Yangtze vs. Hunan Investment Group | China Yangtze vs. Tieling Newcity Investment | China Yangtze vs. Fujian Longzhou Transportation |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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