Correlation Between New Hope and DO Home
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By analyzing existing cross correlation between New Hope Dairy and DO Home Collection, you can compare the effects of market volatilities on New Hope and DO Home 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 DO Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Hope and DO Home.
Diversification Opportunities for New Hope and DO Home
Almost no diversification
The 3 months correlation between New and 002798 is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding New Hope Dairy and DO Home Collection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DO Home Collection 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 DO Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DO Home Collection has no effect on the direction of New Hope i.e., New Hope and DO Home go up and down completely randomly.
Pair Corralation between New Hope and DO Home
Assuming the 90 days trading horizon New Hope is expected to generate 1.11 times less return on investment than DO Home. But when comparing it to its historical volatility, New Hope Dairy is 1.44 times less risky than DO Home. It trades about 0.13 of its potential returns per unit of risk. DO Home Collection is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 419.00 in DO Home Collection on September 1, 2024 and sell it today you would earn a total of 25.00 from holding DO Home Collection or generate 5.97% 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. DO Home Collection
Performance |
| Timeline |
| New Hope Dairy |
| DO Home Collection |
New Hope and DO Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Hope and DO Home
The main advantage of trading using opposite New Hope and DO Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Hope position performs unexpectedly, DO Home 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 DO Home will offset losses from the drop in DO Home'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 |
| DO Home vs. Sinocat Environmental Technology | DO Home vs. Beijing SPC Environment | DO Home vs. Yankershop Food Co | DO Home vs. Anji Foodstuff 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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