Correlation Between New Hope and Zhejiang Juhua
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By analyzing existing cross correlation between New Hope Dairy and Zhejiang Juhua Co, you can compare the effects of market volatilities on New Hope and Zhejiang Juhua 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 Zhejiang Juhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Hope and Zhejiang Juhua.
Diversification Opportunities for New Hope and Zhejiang Juhua
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between New and Zhejiang is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding New Hope Dairy and Zhejiang Juhua Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Juhua 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 Zhejiang Juhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Juhua has no effect on the direction of New Hope i.e., New Hope and Zhejiang Juhua go up and down completely randomly.
Pair Corralation between New Hope and Zhejiang Juhua
Assuming the 90 days trading horizon New Hope Dairy is expected to generate 1.44 times more return on investment than Zhejiang Juhua. However, New Hope is 1.44 times more volatile than Zhejiang Juhua Co. It trades about 0.16 of its potential returns per unit of risk. Zhejiang Juhua Co is currently generating about 0.02 per unit of risk. If you would invest 1,343 in New Hope Dairy on September 13, 2024 and sell it today you would earn a total of 146.00 from holding New Hope Dairy or generate 10.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Hope Dairy vs. Zhejiang Juhua Co
Performance |
| Timeline |
| New Hope Dairy |
| Zhejiang Juhua |
New Hope and Zhejiang Juhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Hope and Zhejiang Juhua
The main advantage of trading using opposite New Hope and Zhejiang Juhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Hope position performs unexpectedly, Zhejiang Juhua 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 Zhejiang Juhua will offset losses from the drop in Zhejiang Juhua's long position.| New Hope vs. Metallurgical of | New Hope vs. Hefei Metalforming Mach | New Hope vs. Jiangsu Xinri E Vehicle | New Hope vs. Dongfeng Automobile Co |
| Zhejiang Juhua vs. Postal Savings Bank | Zhejiang Juhua vs. Shandong Hongchuang Aluminum | Zhejiang Juhua vs. Chongqing Shunbo Aluminum | Zhejiang Juhua vs. Dymatic Chemicals |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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