Correlation Between New Hope and Zhejiang Hisoar
Specify exactly 2 symbols:
By analyzing existing cross correlation between New Hope Dairy and Zhejiang Hisoar Pharmaceutical, you can compare the effects of market volatilities on New Hope and Zhejiang Hisoar 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 Zhejiang Hisoar. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Hope and Zhejiang Hisoar.
Diversification Opportunities for New Hope and Zhejiang Hisoar
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between New and Zhejiang is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding New Hope Dairy and Zhejiang Hisoar Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Hisoar Phar 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 Zhejiang Hisoar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Hisoar Phar has no effect on the direction of New Hope i.e., New Hope and Zhejiang Hisoar go up and down completely randomly.
Pair Corralation between New Hope and Zhejiang Hisoar
Assuming the 90 days trading horizon New Hope Dairy is expected to generate 1.7 times more return on investment than Zhejiang Hisoar. However, New Hope is 1.7 times more volatile than Zhejiang Hisoar Pharmaceutical. It trades about 0.17 of its potential returns per unit of risk. Zhejiang Hisoar Pharmaceutical is currently generating about -0.07 per unit of risk. If you would invest 1,325 in New Hope Dairy on September 12, 2024 and sell it today you would earn a total of 164.00 from holding New Hope Dairy or generate 12.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Hope Dairy vs. Zhejiang Hisoar Pharmaceutical
Performance |
| Timeline |
| New Hope Dairy |
| Zhejiang Hisoar Phar |
New Hope and Zhejiang Hisoar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Hope and Zhejiang Hisoar
The main advantage of trading using opposite New Hope and Zhejiang Hisoar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Hope position performs unexpectedly, Zhejiang Hisoar 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 Zhejiang Hisoar will offset losses from the drop in Zhejiang Hisoar's long position.| New Hope vs. China Petroleum Chemical | New Hope vs. PetroChina Co Ltd | New Hope vs. China State Construction | New Hope vs. China Railway Group |
| Zhejiang Hisoar vs. Shandong Hi Speed RoadBridge | Zhejiang Hisoar vs. Luolai Home Textile | Zhejiang Hisoar vs. Hubeiyichang Transportation Group | Zhejiang Hisoar vs. Anhui Transport Consulting |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Correlations Find global opportunities by holding instruments from different markets |