Correlation Between New Hope and Impulse Qingdao
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By analyzing existing cross correlation between New Hope Dairy and Impulse Qingdao Health, you can compare the effects of market volatilities on New Hope and Impulse Qingdao 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 Impulse Qingdao. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Hope and Impulse Qingdao.
Diversification Opportunities for New Hope and Impulse Qingdao
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between New and Impulse is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding New Hope Dairy and Impulse Qingdao Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impulse Qingdao Health 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 Impulse Qingdao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impulse Qingdao Health has no effect on the direction of New Hope i.e., New Hope and Impulse Qingdao go up and down completely randomly.
Pair Corralation between New Hope and Impulse Qingdao
Assuming the 90 days trading horizon New Hope Dairy is expected to generate 0.53 times more return on investment than Impulse Qingdao. However, New Hope Dairy is 1.9 times less risky than Impulse Qingdao. It trades about 0.19 of its potential returns per unit of risk. Impulse Qingdao Health is currently generating about 0.08 per unit of risk. If you would invest 1,421 in New Hope Dairy on October 23, 2024 and sell it today you would earn a total of 122.00 from holding New Hope Dairy or generate 8.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Hope Dairy vs. Impulse Qingdao Health
Performance |
| Timeline |
| New Hope Dairy |
| Impulse Qingdao Health |
New Hope and Impulse Qingdao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Hope and Impulse Qingdao
The main advantage of trading using opposite New Hope and Impulse Qingdao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Hope position performs unexpectedly, Impulse Qingdao 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 Impulse Qingdao will offset losses from the drop in Impulse Qingdao's long position.| New Hope vs. Tongyu Communication | New Hope vs. Shenzhen Noposion Agrochemicals | New Hope vs. Dymatic Chemicals | New Hope vs. Jilin Jlu Communication |
| Impulse Qingdao vs. Kontour Medical Technology | Impulse Qingdao vs. Allmed Medical Products | Impulse Qingdao vs. Hengkang Medical Group | Impulse Qingdao vs. CareRay Digital Medical |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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