Correlation Between Suzhou Novoprotein and Allied Machinery
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By analyzing existing cross correlation between Suzhou Novoprotein Scientific and Allied Machinery Co, you can compare the effects of market volatilities on Suzhou Novoprotein and Allied Machinery 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 Allied Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and Allied Machinery.
Diversification Opportunities for Suzhou Novoprotein and Allied Machinery
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Suzhou and Allied is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and Allied Machinery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allied Machinery 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 Allied Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allied Machinery has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and Allied Machinery go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and Allied Machinery
Assuming the 90 days trading horizon Suzhou Novoprotein Scientific is expected to under-perform the Allied Machinery. In addition to that, Suzhou Novoprotein is 1.09 times more volatile than Allied Machinery Co. It trades about -0.05 of its total potential returns per unit of risk. Allied Machinery Co is currently generating about -0.03 per unit of volatility. If you would invest 2,557 in Allied Machinery Co on September 5, 2024 and sell it today you would lose (916.00) from holding Allied Machinery Co or give up 35.82% 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. Allied Machinery Co
Performance |
| Timeline |
| Suzhou Novoprotein |
| Allied Machinery |
Suzhou Novoprotein and Allied Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Novoprotein and Allied Machinery
The main advantage of trading using opposite Suzhou Novoprotein and Allied Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, Allied Machinery 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 Allied Machinery will offset losses from the drop in Allied Machinery'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 |
| Allied Machinery vs. Chengdu Kanghua Biological | Allied Machinery vs. Beijing Wantai Biological | Allied Machinery vs. Suzhou Novoprotein Scientific | Allied Machinery 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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