Correlation Between Guangzhou Haige and New Hope
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By analyzing existing cross correlation between Guangzhou Haige Communications and New Hope Dairy, you can compare the effects of market volatilities on Guangzhou Haige 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 Guangzhou Haige with a short position of New Hope. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and New Hope.
Diversification Opportunities for Guangzhou Haige and New Hope
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangzhou and New is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications 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 Guangzhou Haige 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 Guangzhou Haige Communications 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 Guangzhou Haige i.e., Guangzhou Haige and New Hope go up and down completely randomly.
Pair Corralation between Guangzhou Haige and New Hope
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to under-perform the New Hope. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Haige Communications is 1.01 times less risky than New Hope. The stock trades about -0.15 of its potential returns per unit of risk. The New Hope Dairy is currently generating about 0.03 of returns per unit of risk over similar time horizon. 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. New Hope Dairy
Performance |
| Timeline |
| Guangzhou Haige Comm |
| New Hope Dairy |
Guangzhou Haige and New Hope Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and New Hope
The main advantage of trading using opposite Guangzhou Haige and New Hope positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige 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.| Guangzhou Haige vs. Suzhou Weizhixiang Food | Guangzhou Haige vs. Guangzhou Seagull Kitchen | Guangzhou Haige vs. Ligao Foods CoLtd | Guangzhou Haige vs. Gem Year Industrial Co |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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