Correlation Between Suzhou Novoprotein and Hunan Fangsheng
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By analyzing existing cross correlation between Suzhou Novoprotein Scientific and Hunan Fangsheng Pharm, you can compare the effects of market volatilities on Suzhou Novoprotein and Hunan Fangsheng 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 Hunan Fangsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and Hunan Fangsheng.
Diversification Opportunities for Suzhou Novoprotein and Hunan Fangsheng
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Suzhou and Hunan is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and Hunan Fangsheng Pharm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Fangsheng Pharm 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 Hunan Fangsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Fangsheng Pharm has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and Hunan Fangsheng go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and Hunan Fangsheng
Assuming the 90 days trading horizon Suzhou Novoprotein Scientific is expected to under-perform the Hunan Fangsheng. But the stock apears to be less risky and, when comparing its historical volatility, Suzhou Novoprotein Scientific is 1.12 times less risky than Hunan Fangsheng. The stock trades about -0.05 of its potential returns per unit of risk. The Hunan Fangsheng Pharm is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 819.00 in Hunan Fangsheng Pharm on September 5, 2024 and sell it today you would earn a total of 311.00 from holding Hunan Fangsheng Pharm or generate 37.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Suzhou Novoprotein Scientific vs. Hunan Fangsheng Pharm
Performance |
| Timeline |
| Suzhou Novoprotein |
| Hunan Fangsheng Pharm |
Suzhou Novoprotein and Hunan Fangsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Novoprotein and Hunan Fangsheng
The main advantage of trading using opposite Suzhou Novoprotein and Hunan Fangsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, Hunan Fangsheng 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 Hunan Fangsheng will offset losses from the drop in Hunan Fangsheng's long position.| Suzhou Novoprotein vs. Hongrun Construction Group | Suzhou Novoprotein vs. Eastroc Beverage Group | Suzhou Novoprotein vs. Sinomach General Machinery | Suzhou Novoprotein vs. Guangzhou Seagull Kitchen |
| Hunan Fangsheng vs. Ligao Foods CoLtd | Hunan Fangsheng vs. Dazhong Transportation Group | Hunan Fangsheng vs. Jiahe Foods Industry | Hunan Fangsheng vs. Shuhua Sports Co |
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 Stocks Directory module to find actively traded stocks across global markets.
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