Correlation Between Shenzhen Hifuture and New Hope
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and New Hope Dairy, you can compare the effects of market volatilities on Shenzhen Hifuture 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 Shenzhen Hifuture with a short position of New Hope. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and New Hope.
Diversification Opportunities for Shenzhen Hifuture and New Hope
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and New is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric 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 Shenzhen Hifuture 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 Shenzhen Hifuture Electric 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 Shenzhen Hifuture i.e., Shenzhen Hifuture and New Hope go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and New Hope
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to under-perform the New Hope. In addition to that, Shenzhen Hifuture is 1.32 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 1,304 in New Hope Dairy on September 3, 2024 and sell it today you would lose (3.00) from holding New Hope Dairy or give up 0.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. New Hope Dairy
Performance |
| Timeline |
| Shenzhen Hifuture |
| New Hope Dairy |
Shenzhen Hifuture and New Hope Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and New Hope
The main advantage of trading using opposite Shenzhen Hifuture and New Hope positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture 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.| Shenzhen Hifuture vs. Wuhan Yangtze Communication | Shenzhen Hifuture vs. Holitech Technology Co | Shenzhen Hifuture vs. Shenzhen Kexin Communication | Shenzhen Hifuture vs. Saurer Intelligent Technology |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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