Correlation Between New Hope and Beijing SPC
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By analyzing existing cross correlation between New Hope Dairy and Beijing SPC Environment, you can compare the effects of market volatilities on New Hope and Beijing SPC 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 Beijing SPC. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Hope and Beijing SPC.
Diversification Opportunities for New Hope and Beijing SPC
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between New and Beijing is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding New Hope Dairy and Beijing SPC Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing SPC Environment 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 Beijing SPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing SPC Environment has no effect on the direction of New Hope i.e., New Hope and Beijing SPC go up and down completely randomly.
Pair Corralation between New Hope and Beijing SPC
Assuming the 90 days trading horizon New Hope Dairy is expected to generate 1.27 times more return on investment than Beijing SPC. However, New Hope is 1.27 times more volatile than Beijing SPC Environment. It trades about 0.13 of its potential returns per unit of risk. Beijing SPC Environment is currently generating about 0.01 per unit of risk. If you would invest 1,229 in New Hope Dairy on September 1, 2024 and sell it today you would earn a total of 72.00 from holding New Hope Dairy or generate 5.86% 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. Beijing SPC Environment
Performance |
| Timeline |
| New Hope Dairy |
| Beijing SPC Environment |
New Hope and Beijing SPC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Hope and Beijing SPC
The main advantage of trading using opposite New Hope and Beijing SPC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Hope position performs unexpectedly, Beijing SPC 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 Beijing SPC will offset losses from the drop in Beijing SPC's long position.| New Hope vs. Nanjing Putian Telecommunications | New Hope vs. Shenzhen Hifuture Electric | New Hope vs. Tianjin Realty Development | New Hope vs. Shenyang Huitian Thermal |
| Beijing SPC vs. New Hope Dairy | Beijing SPC vs. Shenzhen Topway Video | Beijing SPC vs. Zhengzhou Qianweiyangchu Food | Beijing SPC vs. Juewei Food Co |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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