Correlation Between Suzhou Novoprotein and Suzhou UIGreen
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By analyzing existing cross correlation between Suzhou Novoprotein Scientific and Suzhou UIGreen Micro, you can compare the effects of market volatilities on Suzhou Novoprotein and Suzhou UIGreen 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 Suzhou UIGreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and Suzhou UIGreen.
Diversification Opportunities for Suzhou Novoprotein and Suzhou UIGreen
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Suzhou and Suzhou is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and Suzhou UIGreen Micro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou UIGreen Micro 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 Suzhou UIGreen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou UIGreen Micro has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and Suzhou UIGreen go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and Suzhou UIGreen
Assuming the 90 days trading horizon Suzhou Novoprotein is expected to generate 1.45 times less return on investment than Suzhou UIGreen. But when comparing it to its historical volatility, Suzhou Novoprotein Scientific is 1.71 times less risky than Suzhou UIGreen. It trades about 0.05 of its potential returns per unit of risk. Suzhou UIGreen Micro is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,159 in Suzhou UIGreen Micro on September 5, 2024 and sell it today you would earn a total of 317.00 from holding Suzhou UIGreen Micro or generate 10.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.17% |
| Values | Daily Returns |
Suzhou Novoprotein Scientific vs. Suzhou UIGreen Micro
Performance |
| Timeline |
| Suzhou Novoprotein |
| Suzhou UIGreen Micro |
Suzhou Novoprotein and Suzhou UIGreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Novoprotein and Suzhou UIGreen
The main advantage of trading using opposite Suzhou Novoprotein and Suzhou UIGreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, Suzhou UIGreen 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 Suzhou UIGreen will offset losses from the drop in Suzhou UIGreen'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 |
| Suzhou UIGreen vs. Easyhome New Retail | Suzhou UIGreen vs. Shanghai Metersbonwe FashionAccessories | Suzhou UIGreen vs. UE Furniture Co | Suzhou UIGreen vs. Semiconductor Manufacturing Electronics |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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