Correlation Between Suzhou Novoprotein and Shanghai Rongtai
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By analyzing existing cross correlation between Suzhou Novoprotein Scientific and Shanghai Rongtai Health, you can compare the effects of market volatilities on Suzhou Novoprotein and Shanghai Rongtai 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 Shanghai Rongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and Shanghai Rongtai.
Diversification Opportunities for Suzhou Novoprotein and Shanghai Rongtai
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Suzhou and Shanghai is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and Shanghai Rongtai Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rongtai Health 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 Shanghai Rongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rongtai Health has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and Shanghai Rongtai go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and Shanghai Rongtai
Assuming the 90 days trading horizon Suzhou Novoprotein Scientific is expected to under-perform the Shanghai Rongtai. In addition to that, Suzhou Novoprotein is 1.01 times more volatile than Shanghai Rongtai Health. It trades about -0.05 of its total potential returns per unit of risk. Shanghai Rongtai Health is currently generating about -0.04 per unit of volatility. If you would invest 2,148 in Shanghai Rongtai Health on August 29, 2024 and sell it today you would lose (718.00) from holding Shanghai Rongtai Health or give up 33.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Novoprotein Scientific vs. Shanghai Rongtai Health
Performance |
| Timeline |
| Suzhou Novoprotein |
| Shanghai Rongtai Health |
Suzhou Novoprotein and Shanghai Rongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Novoprotein and Shanghai Rongtai
The main advantage of trading using opposite Suzhou Novoprotein and Shanghai Rongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, Shanghai Rongtai 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 Shanghai Rongtai will offset losses from the drop in Shanghai Rongtai'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 |
| Shanghai Rongtai vs. Jiangxi Hengda Hi Tech | Shanghai Rongtai vs. Soyea Technology Co | Shanghai Rongtai vs. Yindu Kitchen Equipment | Shanghai Rongtai vs. Milkyway Chemical Supply |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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