Correlation Between Suzhou Novoprotein and G Bits
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By analyzing existing cross correlation between Suzhou Novoprotein Scientific and G bits Network Technology, you can compare the effects of market volatilities on Suzhou Novoprotein and G Bits 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 G Bits. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and G Bits.
Diversification Opportunities for Suzhou Novoprotein and G Bits
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suzhou and 603444 is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and G bits Network Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G bits Network 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 G Bits. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G bits Network has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and G Bits go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and G Bits
Assuming the 90 days trading horizon Suzhou Novoprotein Scientific is expected to under-perform the G Bits. But the stock apears to be less risky and, when comparing its historical volatility, Suzhou Novoprotein Scientific is 1.04 times less risky than G Bits. The stock trades about -0.05 of its potential returns per unit of risk. The G bits Network Technology is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 25,631 in G bits Network Technology on August 26, 2024 and sell it today you would lose (5,780) from holding G bits Network Technology or give up 22.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Novoprotein Scientific vs. G bits Network Technology
Performance |
| Timeline |
| Suzhou Novoprotein |
| G bits Network |
Suzhou Novoprotein and G Bits Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Novoprotein and G Bits
The main advantage of trading using opposite Suzhou Novoprotein and G Bits positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, G Bits 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 G Bits will offset losses from the drop in G Bits' long position.| Suzhou Novoprotein vs. Easyhome New Retail | Suzhou Novoprotein vs. State Grid InformationCommunication | Suzhou Novoprotein vs. Sinomach Automobile Co | Suzhou Novoprotein vs. Songz Automobile Air |
| G Bits vs. Shanghai Zhangjiang Hi Tech | G Bits vs. Guangzhou Haige Communications | G Bits vs. Fujian Newland Computer | G Bits vs. Fiberhome Telecommunication Technologies |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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