Correlation Between Suzhou Novoprotein and Eastern Communications
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By analyzing existing cross correlation between Suzhou Novoprotein Scientific and Eastern Communications Co, you can compare the effects of market volatilities on Suzhou Novoprotein and Eastern Communications 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 Eastern Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and Eastern Communications.
Diversification Opportunities for Suzhou Novoprotein and Eastern Communications
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Suzhou and Eastern is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and Eastern Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Communications 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 Eastern Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Communications has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and Eastern Communications go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and Eastern Communications
Assuming the 90 days trading horizon Suzhou Novoprotein Scientific is expected to under-perform the Eastern Communications. In addition to that, Suzhou Novoprotein is 1.01 times more volatile than Eastern Communications Co. It trades about -0.03 of its total potential returns per unit of risk. Eastern Communications Co is currently generating about 0.01 per unit of volatility. If you would invest 41.00 in Eastern Communications Co on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Eastern Communications Co or generate 0.0% 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. Eastern Communications Co
Performance |
| Timeline |
| Suzhou Novoprotein |
| Eastern Communications |
Suzhou Novoprotein and Eastern Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Novoprotein and Eastern Communications
The main advantage of trading using opposite Suzhou Novoprotein and Eastern Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, Eastern Communications 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 Eastern Communications will offset losses from the drop in Eastern Communications' long position.| Suzhou Novoprotein vs. Shenzhen MYS Environmental | Suzhou Novoprotein vs. City Development Environment | Suzhou Novoprotein vs. Gansu Jiu Steel | Suzhou Novoprotein vs. Dongfeng Automobile Co |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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