Correlation Between New Hope and Poly Real
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By analyzing existing cross correlation between New Hope Dairy and Poly Real Estate, you can compare the effects of market volatilities on New Hope and Poly Real 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 Poly Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Hope and Poly Real.
Diversification Opportunities for New Hope and Poly Real
Very poor diversification
The 3 months correlation between New and Poly is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding New Hope Dairy and Poly Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poly Real Estate 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 Poly Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poly Real Estate has no effect on the direction of New Hope i.e., New Hope and Poly Real go up and down completely randomly.
Pair Corralation between New Hope and Poly Real
Assuming the 90 days trading horizon New Hope Dairy is expected to generate 1.06 times more return on investment than Poly Real. However, New Hope is 1.06 times more volatile than Poly Real Estate. It trades about 0.01 of its potential returns per unit of risk. Poly Real Estate is currently generating about -0.02 per unit of risk. If you would invest 1,301 in New Hope Dairy on September 5, 2024 and sell it today you would earn a total of 15.00 from holding New Hope Dairy or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
New Hope Dairy vs. Poly Real Estate
Performance |
| Timeline |
| New Hope Dairy |
| Poly Real Estate |
New Hope and Poly Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Hope and Poly Real
The main advantage of trading using opposite New Hope and Poly Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Hope position performs unexpectedly, Poly Real 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 Poly Real will offset losses from the drop in Poly Real's long position.| New Hope vs. Poly Real Estate | New Hope vs. China Vanke Co | New Hope vs. China Merchants Shekou | New Hope vs. Huafa Industrial Co |
| Poly Real vs. Jafron Biomedical Co | Poly Real vs. Guangzhou Boji Medical | Poly Real vs. Sichuan Hebang Biotechnology | Poly Real vs. Changchun BCHT Biotechnology |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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