Correlation Between Suzhou Novoprotein and Shuhua Sports
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By analyzing existing cross correlation between Suzhou Novoprotein Scientific and Shuhua Sports Co, you can compare the effects of market volatilities on Suzhou Novoprotein and Shuhua Sports 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 Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and Shuhua Sports.
Diversification Opportunities for Suzhou Novoprotein and Shuhua Sports
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Suzhou and Shuhua is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports 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 Shuhua Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shuhua Sports has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and Shuhua Sports go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and Shuhua Sports
Assuming the 90 days trading horizon Suzhou Novoprotein is expected to generate 1.41 times less return on investment than Shuhua Sports. In addition to that, Suzhou Novoprotein is 1.32 times more volatile than Shuhua Sports Co. It trades about 0.05 of its total potential returns per unit of risk. Shuhua Sports Co is currently generating about 0.08 per unit of volatility. If you would invest 743.00 in Shuhua Sports Co on August 28, 2024 and sell it today you would earn a total of 58.00 from holding Shuhua Sports Co or generate 7.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Novoprotein Scientific vs. Shuhua Sports Co
Performance |
| Timeline |
| Suzhou Novoprotein |
| Shuhua Sports |
Suzhou Novoprotein and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Novoprotein and Shuhua Sports
The main advantage of trading using opposite Suzhou Novoprotein and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, Shuhua Sports 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 Shuhua Sports will offset losses from the drop in Shuhua Sports' long position.| Suzhou Novoprotein vs. Vanfund Urban Investment | Suzhou Novoprotein vs. Luyin Investment Group | Suzhou Novoprotein vs. Hunan Investment Group | Suzhou Novoprotein vs. Shuhua Sports Co |
| Shuhua Sports vs. Tianjin Silvery Dragon | Shuhua Sports vs. Jinhui Mining Co | Shuhua Sports vs. Hainan Mining Co | Shuhua Sports vs. Kunwu Jiuding Investment |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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