Correlation Between New Hope and Hainan Mining
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By analyzing existing cross correlation between New Hope Dairy and Hainan Mining Co, you can compare the effects of market volatilities on New Hope and Hainan Mining 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 Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Hope and Hainan Mining.
Diversification Opportunities for New Hope and Hainan Mining
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between New and Hainan is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding New Hope Dairy and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining 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 Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of New Hope i.e., New Hope and Hainan Mining go up and down completely randomly.
Pair Corralation between New Hope and Hainan Mining
Assuming the 90 days trading horizon New Hope Dairy is expected to generate 1.21 times more return on investment than Hainan Mining. However, New Hope is 1.21 times more volatile than Hainan Mining Co. It trades about 0.09 of its potential returns per unit of risk. Hainan Mining Co is currently generating about 0.0 per unit of risk. If you would invest 1,311 in New Hope Dairy on October 28, 2024 and sell it today you would earn a total of 139.00 from holding New Hope Dairy or generate 10.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Hope Dairy vs. Hainan Mining Co
Performance |
| Timeline |
| New Hope Dairy |
| Hainan Mining |
New Hope and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Hope and Hainan Mining
The main advantage of trading using opposite New Hope and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Hope position performs unexpectedly, Hainan Mining 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 Hainan Mining will offset losses from the drop in Hainan Mining's long position.| New Hope vs. City Development Environment | New Hope vs. Jiangsu Jinling Sports | New Hope vs. Central Plains Environment | New Hope vs. Jiangsu Financial Leasing |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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