Correlation Between New Hope and Inner Mongolia
Specify exactly 2 symbols:
By analyzing existing cross correlation between New Hope Dairy and Inner Mongolia Furui, you can compare the effects of market volatilities on New Hope and Inner Mongolia 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 Inner Mongolia. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Hope and Inner Mongolia.
Diversification Opportunities for New Hope and Inner Mongolia
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between New and Inner is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding New Hope Dairy and Inner Mongolia Furui in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inner Mongolia Furui 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 Inner Mongolia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inner Mongolia Furui has no effect on the direction of New Hope i.e., New Hope and Inner Mongolia go up and down completely randomly.
Pair Corralation between New Hope and Inner Mongolia
Assuming the 90 days trading horizon New Hope Dairy is expected to generate 0.53 times more return on investment than Inner Mongolia. However, New Hope Dairy is 1.89 times less risky than Inner Mongolia. It trades about 0.09 of its potential returns per unit of risk. Inner Mongolia Furui is currently generating about -0.25 per unit of risk. If you would invest 1,229 in New Hope Dairy on August 29, 2024 and sell it today you would earn a total of 60.00 from holding New Hope Dairy or generate 4.88% 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. Inner Mongolia Furui
Performance |
| Timeline |
| New Hope Dairy |
| Inner Mongolia Furui |
New Hope and Inner Mongolia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Hope and Inner Mongolia
The main advantage of trading using opposite New Hope and Inner Mongolia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Hope position performs unexpectedly, Inner Mongolia 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 Inner Mongolia will offset losses from the drop in Inner Mongolia's long position.| New Hope vs. Xinjiang Communications Construction | New Hope vs. Zhongtong Guomai Communication | New Hope vs. Jiangsu Jinling Sports | New Hope vs. Guangxi Wuzhou Communications |
| Inner Mongolia vs. YLZ Information Tech | Inner Mongolia vs. Hangzhou Gisway Information | Inner Mongolia vs. Jinling Hotel Corp | Inner Mongolia vs. Eastern Communications 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |