Correlation Between Der International and New Hope
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By analyzing existing cross correlation between Der International Home and New Hope Dairy, you can compare the effects of market volatilities on Der International 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 Der International with a short position of New Hope. Check out your portfolio center. Please also check ongoing floating volatility patterns of Der International and New Hope.
Diversification Opportunities for Der International and New Hope
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Der and New is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Der International Home 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 Der International 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 Der International Home 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 Der International i.e., Der International and New Hope go up and down completely randomly.
Pair Corralation between Der International and New Hope
Assuming the 90 days trading horizon Der International Home is expected to under-perform the New Hope. In addition to that, Der International is 1.2 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 1,525 in New Hope Dairy on December 1, 2024 and sell it today you would lose (13.00) from holding New Hope Dairy or give up 0.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Der International Home vs. New Hope Dairy
Performance |
| Timeline |
| Der International Home |
| New Hope Dairy |
Der International and New Hope Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Der International and New Hope
The main advantage of trading using opposite Der International and New Hope positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Der International 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.| Der International vs. Guotai Epoint Software | Der International vs. Inspur Software Co | Der International vs. Hunan Investment Group | Der International vs. Xiamen Insight Investment |
| New Hope vs. Zhejiang Yinlun Machinery | New Hope vs. Nanjing Putian Telecommunications | New Hope vs. Wintao Communications Co | New Hope vs. Tongyu Communication |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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