Correlation Between New Hope and Ningbo Construction
Specify exactly 2 symbols:
By analyzing existing cross correlation between New Hope Dairy and Ningbo Construction Co, you can compare the effects of market volatilities on New Hope and Ningbo Construction 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 Ningbo Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Hope and Ningbo Construction.
Diversification Opportunities for New Hope and Ningbo Construction
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between New and Ningbo is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding New Hope Dairy and Ningbo Construction Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Construction 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 Ningbo Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Construction has no effect on the direction of New Hope i.e., New Hope and Ningbo Construction go up and down completely randomly.
Pair Corralation between New Hope and Ningbo Construction
Assuming the 90 days trading horizon New Hope Dairy is expected to generate 0.6 times more return on investment than Ningbo Construction. However, New Hope Dairy is 1.67 times less risky than Ningbo Construction. It trades about 0.21 of its potential returns per unit of risk. Ningbo Construction Co is currently generating about 0.11 per unit of risk. If you would invest 1,169 in New Hope Dairy on August 31, 2024 and sell it today you would earn a total of 131.00 from holding New Hope Dairy or generate 11.21% 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. Ningbo Construction Co
Performance |
| Timeline |
| New Hope Dairy |
| Ningbo Construction |
New Hope and Ningbo Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Hope and Ningbo Construction
The main advantage of trading using opposite New Hope and Ningbo Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Hope position performs unexpectedly, Ningbo Construction 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 Ningbo Construction will offset losses from the drop in Ningbo Construction's long position.| New Hope vs. Lutian Machinery Co | New Hope vs. PetroChina Co Ltd | New Hope vs. Bank of China | New Hope vs. Gansu Jiu Steel |
| Ningbo Construction vs. Cultural Investment Holdings | Ningbo Construction vs. Gome Telecom Equipment | Ningbo Construction vs. Bus Online Co | Ningbo Construction vs. Holitech Technology Co |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |