Correlation Between Suzhou Novoprotein and Shanghai Rightongene
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By analyzing existing cross correlation between Suzhou Novoprotein Scientific and Shanghai Rightongene Biotechnology, you can compare the effects of market volatilities on Suzhou Novoprotein and Shanghai Rightongene 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 Rightongene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and Shanghai Rightongene.
Diversification Opportunities for Suzhou Novoprotein and Shanghai Rightongene
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Suzhou and Shanghai is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and Shanghai Rightongene Biotechno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rightongene 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 Rightongene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rightongene has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and Shanghai Rightongene go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and Shanghai Rightongene
Assuming the 90 days trading horizon Suzhou Novoprotein is expected to generate 2.09 times less return on investment than Shanghai Rightongene. But when comparing it to its historical volatility, Suzhou Novoprotein Scientific is 1.53 times less risky than Shanghai Rightongene. It trades about 0.11 of its potential returns per unit of risk. Shanghai Rightongene Biotechnology is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,452 in Shanghai Rightongene Biotechnology on September 3, 2024 and sell it today you would earn a total of 637.00 from holding Shanghai Rightongene Biotechnology or generate 43.87% 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. Shanghai Rightongene Biotechno
Performance |
| Timeline |
| Suzhou Novoprotein |
| Shanghai Rightongene |
Suzhou Novoprotein and Shanghai Rightongene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Novoprotein and Shanghai Rightongene
The main advantage of trading using opposite Suzhou Novoprotein and Shanghai Rightongene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, Shanghai Rightongene 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 Rightongene will offset losses from the drop in Shanghai Rightongene's long position.| Suzhou Novoprotein vs. Henan Shuanghui Investment | Suzhou Novoprotein vs. HeBei Jinniu Chemical | Suzhou Novoprotein vs. Kunwu Jiuding Investment | Suzhou Novoprotein vs. Ningxia Younglight Chemicals |
| Shanghai Rightongene vs. Chengdu Kanghua Biological | Shanghai Rightongene vs. Beijing Wantai Biological | Shanghai Rightongene vs. Suzhou Novoprotein Scientific | Shanghai Rightongene 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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