Correlation Between Suzhou Novoprotein and Jiangsu GDK
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By analyzing existing cross correlation between Suzhou Novoprotein Scientific and Jiangsu GDK Biotechnology, you can compare the effects of market volatilities on Suzhou Novoprotein and Jiangsu GDK 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 Jiangsu GDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and Jiangsu GDK.
Diversification Opportunities for Suzhou Novoprotein and Jiangsu GDK
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Suzhou and Jiangsu is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and Jiangsu GDK Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu GDK Biotechnology 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 Jiangsu GDK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu GDK Biotechnology has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and Jiangsu GDK go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and Jiangsu GDK
Assuming the 90 days trading horizon Suzhou Novoprotein Scientific is expected to under-perform the Jiangsu GDK. But the stock apears to be less risky and, when comparing its historical volatility, Suzhou Novoprotein Scientific is 1.34 times less risky than Jiangsu GDK. The stock trades about -0.05 of its potential returns per unit of risk. The Jiangsu GDK Biotechnology is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 3,227 in Jiangsu GDK Biotechnology on September 4, 2024 and sell it today you would lose (1,609) from holding Jiangsu GDK Biotechnology or give up 49.86% 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. Jiangsu GDK Biotechnology
Performance |
| Timeline |
| Suzhou Novoprotein |
| Jiangsu GDK Biotechnology |
Suzhou Novoprotein and Jiangsu GDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Novoprotein and Jiangsu GDK
The main advantage of trading using opposite Suzhou Novoprotein and Jiangsu GDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, Jiangsu GDK 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 Jiangsu GDK will offset losses from the drop in Jiangsu GDK's long position.| Suzhou Novoprotein vs. Iat Automobile Technology | Suzhou Novoprotein vs. Dongfeng Automobile Co | Suzhou Novoprotein vs. Dawning Information Industry | Suzhou Novoprotein vs. CITIC Guoan Information |
| Jiangsu GDK vs. Sinofibers Technology Co | Jiangsu GDK vs. Niutech Environment Technology | Jiangsu GDK vs. Anhui Transport Consulting | Jiangsu GDK vs. Kuangda Technology Group |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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