Correlation Between Suzhou Novoprotein and Shanghai
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By analyzing existing cross correlation between Suzhou Novoprotein Scientific and Shanghai MG Stationery, you can compare the effects of market volatilities on Suzhou Novoprotein and Shanghai 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and Shanghai.
Diversification Opportunities for Suzhou Novoprotein and Shanghai
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suzhou and Shanghai is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and Shanghai MG Stationery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai MG Stationery 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. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai MG Stationery has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and Shanghai go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and Shanghai
Assuming the 90 days trading horizon Suzhou Novoprotein Scientific is expected to generate 1.43 times more return on investment than Shanghai. However, Suzhou Novoprotein is 1.43 times more volatile than Shanghai MG Stationery. It trades about 0.3 of its potential returns per unit of risk. Shanghai MG Stationery is currently generating about -0.21 per unit of risk. If you would invest 3,126 in Suzhou Novoprotein Scientific on November 28, 2024 and sell it today you would earn a total of 274.00 from holding Suzhou Novoprotein Scientific or generate 8.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Suzhou Novoprotein Scientific vs. Shanghai MG Stationery
Performance |
| Timeline |
| Suzhou Novoprotein |
| Shanghai MG Stationery |
Suzhou Novoprotein and Shanghai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Novoprotein and Shanghai
The main advantage of trading using opposite Suzhou Novoprotein and Shanghai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, Shanghai 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 will offset losses from the drop in Shanghai's long position.| Suzhou Novoprotein vs. Qingdao Hi Tech Moulds | Suzhou Novoprotein vs. JCHX Mining Management | Suzhou Novoprotein vs. Ningbo Jintian Copper | Suzhou Novoprotein vs. China Minmetals Rare |
| Shanghai vs. Bosera CMSK Industrial | Shanghai vs. Hengerda New Materials | Shanghai vs. JCHX Mining Management | Shanghai vs. Super Dragon Engineering Plastics |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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