Correlation Between New Hope and Yes Optoelectronics
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By analyzing existing cross correlation between New Hope Dairy and Yes Optoelectronics Co, you can compare the effects of market volatilities on New Hope and Yes Optoelectronics 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 Yes Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Hope and Yes Optoelectronics.
Diversification Opportunities for New Hope and Yes Optoelectronics
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between New and Yes is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding New Hope Dairy and Yes Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yes Optoelectronics 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 Yes Optoelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yes Optoelectronics has no effect on the direction of New Hope i.e., New Hope and Yes Optoelectronics go up and down completely randomly.
Pair Corralation between New Hope and Yes Optoelectronics
Assuming the 90 days trading horizon New Hope Dairy is expected to generate 0.5 times more return on investment than Yes Optoelectronics. However, New Hope Dairy is 2.01 times less risky than Yes Optoelectronics. It trades about 0.14 of its potential returns per unit of risk. Yes Optoelectronics Co is currently generating about -0.21 per unit of risk. If you would invest 1,468 in New Hope Dairy on October 15, 2024 and sell it today you would earn a total of 105.00 from holding New Hope Dairy or generate 7.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Hope Dairy vs. Yes Optoelectronics Co
Performance |
| Timeline |
| New Hope Dairy |
| Yes Optoelectronics |
New Hope and Yes Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Hope and Yes Optoelectronics
The main advantage of trading using opposite New Hope and Yes Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Hope position performs unexpectedly, Yes Optoelectronics 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 Yes Optoelectronics will offset losses from the drop in Yes Optoelectronics' long position.| New Hope vs. Fibocom Wireless | New Hope vs. Guangzhou Haige Communications | New Hope vs. Songz Automobile Air | New Hope vs. Sportsoul Co Ltd |
| Yes Optoelectronics vs. Sihui Fuji Electronics | Yes Optoelectronics vs. Shengda Mining Co | Yes Optoelectronics vs. Hainan Mining Co | Yes Optoelectronics vs. Integrated Electronic Systems |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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