Correlation Between New Hope and Sinofibers Technology
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By analyzing existing cross correlation between New Hope Dairy and Sinofibers Technology Co, you can compare the effects of market volatilities on New Hope and Sinofibers Technology 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 Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Hope and Sinofibers Technology.
Diversification Opportunities for New Hope and Sinofibers Technology
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between New and Sinofibers is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding New Hope Dairy and Sinofibers Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinofibers Technology 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 Sinofibers Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinofibers Technology has no effect on the direction of New Hope i.e., New Hope and Sinofibers Technology go up and down completely randomly.
Pair Corralation between New Hope and Sinofibers Technology
Assuming the 90 days trading horizon New Hope Dairy is expected to generate 1.26 times more return on investment than Sinofibers Technology. However, New Hope is 1.26 times more volatile than Sinofibers Technology Co. It trades about 0.07 of its potential returns per unit of risk. Sinofibers Technology Co is currently generating about -0.05 per unit of risk. If you would invest 1,489 in New Hope Dairy on October 12, 2024 and sell it today you would earn a total of 56.00 from holding New Hope Dairy or generate 3.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Hope Dairy vs. Sinofibers Technology Co
Performance |
| Timeline |
| New Hope Dairy |
| Sinofibers Technology |
New Hope and Sinofibers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Hope and Sinofibers Technology
The main advantage of trading using opposite New Hope and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Hope position performs unexpectedly, Sinofibers Technology 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 Sinofibers Technology will offset losses from the drop in Sinofibers Technology's long position.| New Hope vs. Jointo Energy Investment | New Hope vs. Harbin Hatou Investment | New Hope vs. Hubei Geoway Investment | New Hope vs. Shanghai Material Trading |
| Sinofibers Technology vs. V V Food | Sinofibers Technology vs. Guangdong Silvere Sci | Sinofibers Technology vs. Qingdao Foods Co | Sinofibers Technology vs. New Hope Dairy |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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