Correlation Between New Hope and Yankershop Food
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By analyzing existing cross correlation between New Hope Dairy and Yankershop Food Co, you can compare the effects of market volatilities on New Hope and Yankershop Food 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 Yankershop Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Hope and Yankershop Food.
Diversification Opportunities for New Hope and Yankershop Food
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between New and Yankershop is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding New Hope Dairy and Yankershop Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yankershop Food 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 Yankershop Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yankershop Food has no effect on the direction of New Hope i.e., New Hope and Yankershop Food go up and down completely randomly.
Pair Corralation between New Hope and Yankershop Food
Assuming the 90 days trading horizon New Hope Dairy is expected to generate 1.02 times more return on investment than Yankershop Food. However, New Hope is 1.02 times more volatile than Yankershop Food Co. It trades about -0.02 of its potential returns per unit of risk. Yankershop Food Co is currently generating about -0.42 per unit of risk. If you would invest 1,465 in New Hope Dairy on November 3, 2024 and sell it today you would lose (18.00) from holding New Hope Dairy or give up 1.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Hope Dairy vs. Yankershop Food Co
Performance |
| Timeline |
| New Hope Dairy |
| Yankershop Food |
New Hope and Yankershop Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Hope and Yankershop Food
The main advantage of trading using opposite New Hope and Yankershop Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Hope position performs unexpectedly, Yankershop Food 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 Yankershop Food will offset losses from the drop in Yankershop Food's long position.| New Hope vs. Ping An Insurance | New Hope vs. Chengdu Spaceon Electronics | New Hope vs. Omnijoi Media Corp | New Hope vs. Thinkingdom Media Group |
| Yankershop Food vs. China Longyuan Power | Yankershop Food vs. PetroChina Co Ltd | Yankershop Food vs. Guangxi Guiguan Electric | Yankershop Food vs. Yantai North Andre |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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