Correlation Between New Hope and Changjiang Publishing
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By analyzing existing cross correlation between New Hope Dairy and Changjiang Publishing Media, you can compare the effects of market volatilities on New Hope and Changjiang Publishing 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 Changjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Hope and Changjiang Publishing.
Diversification Opportunities for New Hope and Changjiang Publishing
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between New and Changjiang is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding New Hope Dairy and Changjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Publishing 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 Changjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Publishing has no effect on the direction of New Hope i.e., New Hope and Changjiang Publishing go up and down completely randomly.
Pair Corralation between New Hope and Changjiang Publishing
Assuming the 90 days trading horizon New Hope Dairy is expected to under-perform the Changjiang Publishing. In addition to that, New Hope is 1.08 times more volatile than Changjiang Publishing Media. It trades about -0.27 of its total potential returns per unit of risk. Changjiang Publishing Media is currently generating about -0.04 per unit of volatility. If you would invest 918.00 in Changjiang Publishing Media on November 6, 2024 and sell it today you would lose (14.00) from holding Changjiang Publishing Media or give up 1.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Hope Dairy vs. Changjiang Publishing Media
Performance |
| Timeline |
| New Hope Dairy |
| Changjiang Publishing |
New Hope and Changjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Hope and Changjiang Publishing
The main advantage of trading using opposite New Hope and Changjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Hope position performs unexpectedly, Changjiang Publishing 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 Changjiang Publishing will offset losses from the drop in Changjiang Publishing's long position.| New Hope vs. Newcapec Electronics Co | New Hope vs. Sihui Fuji Electronics | New Hope vs. Xinya Electronic Co | New Hope vs. Weihai Honglin Electronic |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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