Correlation Between Maoming Petro and New Hope
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By analyzing existing cross correlation between Maoming Petro Chemical Shihua and New Hope Dairy, you can compare the effects of market volatilities on Maoming Petro and New Hope 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 Maoming Petro with a short position of New Hope. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maoming Petro and New Hope.
Diversification Opportunities for Maoming Petro and New Hope
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Maoming and New is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Maoming Petro Chemical Shihua and New Hope Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Hope Dairy and Maoming Petro 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 Maoming Petro Chemical Shihua are associated (or correlated) with New Hope. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Hope Dairy has no effect on the direction of Maoming Petro i.e., Maoming Petro and New Hope go up and down completely randomly.
Pair Corralation between Maoming Petro and New Hope
Assuming the 90 days trading horizon Maoming Petro Chemical Shihua is expected to under-perform the New Hope. In addition to that, Maoming Petro is 1.06 times more volatile than New Hope Dairy. It trades about -0.01 of its total potential returns per unit of risk. New Hope Dairy is currently generating about 0.01 per unit of volatility. If you would invest 1,328 in New Hope Dairy on September 4, 2024 and sell it today you would lose (12.00) from holding New Hope Dairy or give up 0.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maoming Petro Chemical Shihua vs. New Hope Dairy
Performance |
| Timeline |
| Maoming Petro Chemical |
| New Hope Dairy |
Maoming Petro and New Hope Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maoming Petro and New Hope
The main advantage of trading using opposite Maoming Petro and New Hope positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maoming Petro position performs unexpectedly, New Hope 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 New Hope will offset losses from the drop in New Hope's long position.| Maoming Petro vs. Zijin Mining Group | Maoming Petro vs. Wanhua Chemical Group | Maoming Petro vs. Baoshan Iron Steel | Maoming Petro vs. Shandong Gold Mining |
| New Hope vs. Poly Real Estate | New Hope vs. China Vanke Co | New Hope vs. China Merchants Shekou | New Hope vs. Huafa Industrial 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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