Correlation Between Suzhou Novoprotein and Beijing HuaYuanYiTong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Suzhou Novoprotein Scientific and Beijing HuaYuanYiTong Thermal, you can compare the effects of market volatilities on Suzhou Novoprotein and Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and Beijing HuaYuanYiTong.
Diversification Opportunities for Suzhou Novoprotein and Beijing HuaYuanYiTong
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suzhou and Beijing is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and Beijing HuaYuanYiTong Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing HuaYuanYiTong has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and Beijing HuaYuanYiTong go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and Beijing HuaYuanYiTong
Assuming the 90 days trading horizon Suzhou Novoprotein is expected to generate 1.73 times less return on investment than Beijing HuaYuanYiTong. But when comparing it to its historical volatility, Suzhou Novoprotein Scientific is 1.12 times less risky than Beijing HuaYuanYiTong. It trades about 0.07 of its potential returns per unit of risk. Beijing HuaYuanYiTong Thermal is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 876.00 in Beijing HuaYuanYiTong Thermal on September 25, 2024 and sell it today you would earn a total of 181.00 from holding Beijing HuaYuanYiTong Thermal or generate 20.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.33% |
Values | Daily Returns |
Suzhou Novoprotein Scientific vs. Beijing HuaYuanYiTong Thermal
Performance |
Timeline |
Suzhou Novoprotein |
Beijing HuaYuanYiTong |
Suzhou Novoprotein and Beijing HuaYuanYiTong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Suzhou Novoprotein and Beijing HuaYuanYiTong
The main advantage of trading using opposite Suzhou Novoprotein and Beijing HuaYuanYiTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong will offset losses from the drop in Beijing HuaYuanYiTong's long position.Suzhou Novoprotein vs. Jiangsu Jinling Sports | Suzhou Novoprotein vs. Dazhong Transportation Group | Suzhou Novoprotein vs. Zhengping RoadBridge Constr | Suzhou Novoprotein vs. Fujian Longzhou Transportation |
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.
Other Complementary Tools
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |