Correlation Between New Hope and Jiangsu Yanghe
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By analyzing existing cross correlation between New Hope Dairy and Jiangsu Yanghe Brewery, you can compare the effects of market volatilities on New Hope and Jiangsu Yanghe 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 Jiangsu Yanghe. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Hope and Jiangsu Yanghe.
Diversification Opportunities for New Hope and Jiangsu Yanghe
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between New and Jiangsu is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding New Hope Dairy and Jiangsu Yanghe Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yanghe Brewery 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 Jiangsu Yanghe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yanghe Brewery has no effect on the direction of New Hope i.e., New Hope and Jiangsu Yanghe go up and down completely randomly.
Pair Corralation between New Hope and Jiangsu Yanghe
Assuming the 90 days trading horizon New Hope Dairy is expected to generate 3.24 times more return on investment than Jiangsu Yanghe. However, New Hope is 3.24 times more volatile than Jiangsu Yanghe Brewery. It trades about 0.19 of its potential returns per unit of risk. Jiangsu Yanghe Brewery is currently generating about -0.04 per unit of risk. If you would invest 1,240 in New Hope Dairy on September 26, 2024 and sell it today you would earn a total of 188.00 from holding New Hope Dairy or generate 15.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Hope Dairy vs. Jiangsu Yanghe Brewery
Performance |
| Timeline |
| New Hope Dairy |
| Jiangsu Yanghe Brewery |
New Hope and Jiangsu Yanghe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Hope and Jiangsu Yanghe
The main advantage of trading using opposite New Hope and Jiangsu Yanghe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Hope position performs unexpectedly, Jiangsu Yanghe 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 Jiangsu Yanghe will offset losses from the drop in Jiangsu Yanghe's long position.| New Hope vs. Ming Yang Smart | New Hope vs. 159681 | New Hope vs. 159005 | New Hope vs. Loctek Ergonomic Technology |
| Jiangsu Yanghe vs. PetroChina Co Ltd | Jiangsu Yanghe vs. China Mobile Limited | Jiangsu Yanghe vs. CNOOC Limited | Jiangsu Yanghe vs. Ping An Insurance |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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