Correlation Between New Hope and Shenzhen Centralcon
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By analyzing existing cross correlation between New Hope Dairy and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on New Hope and Shenzhen Centralcon 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 New Hope with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Hope and Shenzhen Centralcon.
Diversification Opportunities for New Hope and Shenzhen Centralcon
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between New and Shenzhen is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding New Hope Dairy and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and New Hope 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 New Hope Dairy are associated (or correlated) with Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of New Hope i.e., New Hope and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between New Hope and Shenzhen Centralcon
Assuming the 90 days trading horizon New Hope Dairy is expected to generate 0.98 times more return on investment than Shenzhen Centralcon. However, New Hope Dairy is 1.02 times less risky than Shenzhen Centralcon. It trades about 0.19 of its potential returns per unit of risk. Shenzhen Centralcon Investment is currently generating about 0.11 per unit of risk. If you would invest 814.00 in New Hope Dairy on September 21, 2024 and sell it today you would earn a total of 605.00 from holding New Hope Dairy or generate 74.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Hope Dairy vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| New Hope Dairy |
| Shenzhen Centralcon |
New Hope and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Hope and Shenzhen Centralcon
The main advantage of trading using opposite New Hope and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Hope position performs unexpectedly, Shenzhen Centralcon 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 Shenzhen Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.| New Hope vs. Nanjing Putian Telecommunications | New Hope vs. Tianjin Realty Development | New Hope vs. Kangyue Technology Co | New Hope vs. Shenzhen Hifuture Electric |
| Shenzhen Centralcon vs. Xinjiang Communications Construction | Shenzhen Centralcon vs. Great Sun Foods Co | Shenzhen Centralcon vs. New Hope Dairy | Shenzhen Centralcon vs. Hubei Yingtong Telecommunication |
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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