Correlation Between New Hope and Metallurgical
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By analyzing existing cross correlation between New Hope Dairy and Metallurgical of, you can compare the effects of market volatilities on New Hope and Metallurgical 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 Metallurgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Hope and Metallurgical.
Diversification Opportunities for New Hope and Metallurgical
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between New and Metallurgical is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding New Hope Dairy and Metallurgical of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metallurgical 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 Metallurgical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metallurgical has no effect on the direction of New Hope i.e., New Hope and Metallurgical go up and down completely randomly.
Pair Corralation between New Hope and Metallurgical
Assuming the 90 days trading horizon New Hope Dairy is expected to generate 1.47 times more return on investment than Metallurgical. However, New Hope is 1.47 times more volatile than Metallurgical of. It trades about 0.26 of its potential returns per unit of risk. Metallurgical of is currently generating about 0.0 per unit of risk. If you would invest 1,309 in New Hope Dairy on September 14, 2024 and sell it today you would earn a total of 260.00 from holding New Hope Dairy or generate 19.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Hope Dairy vs. Metallurgical of
Performance |
| Timeline |
| New Hope Dairy |
| Metallurgical |
New Hope and Metallurgical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Hope and Metallurgical
The main advantage of trading using opposite New Hope and Metallurgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Hope position performs unexpectedly, Metallurgical 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 Metallurgical will offset losses from the drop in Metallurgical's long position.| New Hope vs. Xiangyang Automobile Bearing | New Hope vs. Zhongtong Guomai Communication | New Hope vs. Haima Automobile Group | New Hope vs. Shanghai Ziyan Foods |
| Metallurgical vs. Ming Yang Smart | Metallurgical vs. 159681 | Metallurgical vs. 159005 | Metallurgical vs. Loctek Ergonomic Technology |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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