Correlation Between Suzhou Novoprotein and China Satellite
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By analyzing existing cross correlation between Suzhou Novoprotein Scientific and China Satellite Communications, you can compare the effects of market volatilities on Suzhou Novoprotein and China Satellite 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 China Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Novoprotein and China Satellite.
Diversification Opportunities for Suzhou Novoprotein and China Satellite
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suzhou and China is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Novoprotein Scientific and China Satellite Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Satellite Comm 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 China Satellite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Satellite Comm has no effect on the direction of Suzhou Novoprotein i.e., Suzhou Novoprotein and China Satellite go up and down completely randomly.
Pair Corralation between Suzhou Novoprotein and China Satellite
Assuming the 90 days trading horizon Suzhou Novoprotein is expected to generate 4.18 times less return on investment than China Satellite. But when comparing it to its historical volatility, Suzhou Novoprotein Scientific is 2.31 times less risky than China Satellite. It trades about 0.05 of its potential returns per unit of risk. China Satellite Communications is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,059 in China Satellite Communications on September 24, 2024 and sell it today you would earn a total of 127.00 from holding China Satellite Communications or generate 6.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Suzhou Novoprotein Scientific vs. China Satellite Communications
Performance |
Timeline |
Suzhou Novoprotein |
China Satellite Comm |
Suzhou Novoprotein and China Satellite Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Suzhou Novoprotein and China Satellite
The main advantage of trading using opposite Suzhou Novoprotein and China Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Novoprotein position performs unexpectedly, China Satellite 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 China Satellite will offset losses from the drop in China Satellite's long position.Suzhou Novoprotein vs. Industrial and Commercial | Suzhou Novoprotein vs. Agricultural Bank of | Suzhou Novoprotein vs. China Construction Bank | Suzhou Novoprotein vs. Bank of China |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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