Correlation Between Shenyang Huitian and New Hope
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By analyzing existing cross correlation between Shenyang Huitian Thermal and New Hope Dairy, you can compare the effects of market volatilities on Shenyang Huitian 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 Shenyang Huitian with a short position of New Hope. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and New Hope.
Diversification Opportunities for Shenyang Huitian and New Hope
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenyang and New is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal 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 Shenyang Huitian 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 Shenyang Huitian Thermal 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 Shenyang Huitian i.e., Shenyang Huitian and New Hope go up and down completely randomly.
Pair Corralation between Shenyang Huitian and New Hope
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to under-perform the New Hope. In addition to that, Shenyang Huitian is 1.18 times more volatile than New Hope Dairy. It trades about -0.02 of its total potential returns per unit of risk. New Hope Dairy is currently generating about 0.1 per unit of volatility. If you would invest 1,248 in New Hope Dairy on September 3, 2024 and sell it today you would earn a total of 53.00 from holding New Hope Dairy or generate 4.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. New Hope Dairy
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| New Hope Dairy |
Shenyang Huitian and New Hope Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and New Hope
The main advantage of trading using opposite Shenyang Huitian and New Hope positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian 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.| Shenyang Huitian vs. Industrial and Commercial | Shenyang Huitian vs. Agricultural Bank of | Shenyang Huitian vs. China Construction Bank | Shenyang Huitian vs. Bank of China |
| New Hope vs. Beijing Wantai Biological | New Hope vs. Aluminum Corp of | New Hope vs. COL Digital Publishing | New Hope vs. Shaanxi Meineng Clean |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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