Correlation Between Sportsoul and New Hope
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By analyzing existing cross correlation between Sportsoul Co Ltd and New Hope Dairy, you can compare the effects of market volatilities on Sportsoul 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 Sportsoul with a short position of New Hope. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sportsoul and New Hope.
Diversification Opportunities for Sportsoul and New Hope
Very good diversification
The 3 months correlation between Sportsoul and New is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Sportsoul Co Ltd 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 Sportsoul 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 Sportsoul Co Ltd 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 Sportsoul i.e., Sportsoul and New Hope go up and down completely randomly.
Pair Corralation between Sportsoul and New Hope
Assuming the 90 days trading horizon Sportsoul Co Ltd is expected to under-perform the New Hope. In addition to that, Sportsoul is 1.24 times more volatile than New Hope Dairy. It trades about -0.07 of its total potential returns per unit of risk. New Hope Dairy is currently generating about 0.03 per unit of volatility. If you would invest 1,440 in New Hope Dairy on October 28, 2024 and sell it today you would earn a total of 10.00 from holding New Hope Dairy or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sportsoul Co Ltd vs. New Hope Dairy
Performance |
| Timeline |
| Sportsoul |
| New Hope Dairy |
Sportsoul and New Hope Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sportsoul and New Hope
The main advantage of trading using opposite Sportsoul and New Hope positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sportsoul 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.| Sportsoul vs. Ming Yang Smart | Sportsoul vs. 159681 | Sportsoul vs. 159005 | Sportsoul vs. Loctek Ergonomic Technology |
| New Hope vs. City Development Environment | New Hope vs. Jiangsu Jinling Sports | New Hope vs. Central Plains Environment | New Hope vs. Jiangsu Financial Leasing |
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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