Correlation Between Suzhou Novoprotein and Zhende Medical
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By analyzing existing cross correlation between Suzhou Novoprotein Scientific and Zhende Medical Co, you can compare the effects of market volatilities on Suzhou Novoprotein and Zhende Medical 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 Zhende Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and Zhende Medical.
Diversification Opportunities for Suzhou Novoprotein and Zhende Medical
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Suzhou and Zhende is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and Zhende Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhende Medical 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 Zhende Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhende Medical has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and Zhende Medical go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and Zhende Medical
Assuming the 90 days trading horizon Suzhou Novoprotein Scientific is expected to generate 1.35 times more return on investment than Zhende Medical. However, Suzhou Novoprotein is 1.35 times more volatile than Zhende Medical Co. It trades about -0.06 of its potential returns per unit of risk. Zhende Medical Co is currently generating about -0.09 per unit of risk. If you would invest 3,960 in Suzhou Novoprotein Scientific on September 3, 2024 and sell it today you would lose (335.00) from holding Suzhou Novoprotein Scientific or give up 8.46% 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. Zhende Medical Co
Performance |
| Timeline |
| Suzhou Novoprotein |
| Zhende Medical |
Suzhou Novoprotein and Zhende Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Novoprotein and Zhende Medical
The main advantage of trading using opposite Suzhou Novoprotein and Zhende Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, Zhende Medical 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 Zhende Medical will offset losses from the drop in Zhende Medical'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 |
| Zhende Medical vs. Chengdu Kanghua Biological | Zhende Medical vs. Beijing Wantai Biological | Zhende Medical vs. Suzhou Novoprotein Scientific | Zhende Medical vs. Aluminum Corp of |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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