Correlation Between New Hope and JCET Group
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By analyzing existing cross correlation between New Hope Dairy and JCET Group Co, you can compare the effects of market volatilities on New Hope and JCET Group 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 JCET Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Hope and JCET Group.
Diversification Opportunities for New Hope and JCET Group
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between New and JCET is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding New Hope Dairy and JCET Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JCET Group 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 JCET Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JCET Group has no effect on the direction of New Hope i.e., New Hope and JCET Group go up and down completely randomly.
Pair Corralation between New Hope and JCET Group
Assuming the 90 days trading horizon New Hope Dairy is expected to generate 2.51 times more return on investment than JCET Group. However, New Hope is 2.51 times more volatile than JCET Group Co. It trades about 0.14 of its potential returns per unit of risk. JCET Group Co is currently generating about 0.12 per unit of risk. If you would invest 1,289 in New Hope Dairy on September 27, 2024 and sell it today you would earn a total of 135.00 from holding New Hope Dairy or generate 10.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Hope Dairy vs. JCET Group Co
Performance |
| Timeline |
| New Hope Dairy |
| JCET Group |
New Hope and JCET Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Hope and JCET Group
The main advantage of trading using opposite New Hope and JCET Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Hope position performs unexpectedly, JCET Group 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 JCET Group will offset losses from the drop in JCET Group's long position.| New Hope vs. Ming Yang Smart | New Hope vs. 159681 | New Hope vs. 159005 | New Hope vs. Loctek Ergonomic Technology |
| JCET Group vs. Dhc Software Co | JCET Group vs. Xinya Electronic Co | JCET Group vs. Fuzhou Rockchip Electronics | JCET Group vs. Kuang Chi Technologies |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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