Correlation Between New Hope and North Copper
Specify exactly 2 symbols:
By analyzing existing cross correlation between New Hope Dairy and North Copper Shanxi, you can compare the effects of market volatilities on New Hope and North Copper 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 North Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Hope and North Copper.
Diversification Opportunities for New Hope and North Copper
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between New and North is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding New Hope Dairy and North Copper Shanxi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Copper Shanxi 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 North Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Copper Shanxi has no effect on the direction of New Hope i.e., New Hope and North Copper go up and down completely randomly.
Pair Corralation between New Hope and North Copper
Assuming the 90 days trading horizon New Hope is expected to generate 2.01 times less return on investment than North Copper. But when comparing it to its historical volatility, New Hope Dairy is 1.21 times less risky than North Copper. It trades about 0.03 of its potential returns per unit of risk. North Copper Shanxi is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 614.00 in North Copper Shanxi on October 16, 2024 and sell it today you would earn a total of 335.00 from holding North Copper Shanxi or generate 54.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Hope Dairy vs. North Copper Shanxi
Performance |
| Timeline |
| New Hope Dairy |
| North Copper Shanxi |
New Hope and North Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Hope and North Copper
The main advantage of trading using opposite New Hope and North Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Hope position performs unexpectedly, North Copper 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 North Copper will offset losses from the drop in North Copper's long position.| New Hope vs. ZYF Lopsking Aluminum | New Hope vs. Western Metal Materials | New Hope vs. Chengdu Spaceon Electronics | New Hope vs. Huaxia Fund Management |
| North Copper vs. CSSC Offshore Marine | North Copper vs. Caihong Display Devices | North Copper vs. Aba Chemicals Corp | North Copper vs. Hubei Xingfa Chemicals |
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.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |