Correlation Between New Hope and Zhangjiagang Elegant
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By analyzing existing cross correlation between New Hope Dairy and Zhangjiagang Elegant Home, you can compare the effects of market volatilities on New Hope and Zhangjiagang Elegant 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 Zhangjiagang Elegant. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Hope and Zhangjiagang Elegant.
Diversification Opportunities for New Hope and Zhangjiagang Elegant
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between New and Zhangjiagang is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding New Hope Dairy and Zhangjiagang Elegant Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhangjiagang Elegant Home 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 Zhangjiagang Elegant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhangjiagang Elegant Home has no effect on the direction of New Hope i.e., New Hope and Zhangjiagang Elegant go up and down completely randomly.
Pair Corralation between New Hope and Zhangjiagang Elegant
Assuming the 90 days trading horizon New Hope Dairy is expected to generate 0.97 times more return on investment than Zhangjiagang Elegant. However, New Hope Dairy is 1.03 times less risky than Zhangjiagang Elegant. It trades about 0.17 of its potential returns per unit of risk. Zhangjiagang Elegant Home is currently generating about 0.09 per unit of risk. If you would invest 1,421 in New Hope Dairy on October 23, 2024 and sell it today you would earn a total of 111.00 from holding New Hope Dairy or generate 7.81% 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. Zhangjiagang Elegant Home
Performance |
| Timeline |
| New Hope Dairy |
| Zhangjiagang Elegant Home |
New Hope and Zhangjiagang Elegant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Hope and Zhangjiagang Elegant
The main advantage of trading using opposite New Hope and Zhangjiagang Elegant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Hope position performs unexpectedly, Zhangjiagang Elegant 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 Zhangjiagang Elegant will offset losses from the drop in Zhangjiagang Elegant's long position.| New Hope vs. Tongyu Communication | New Hope vs. Shenzhen Noposion Agrochemicals | New Hope vs. Dymatic Chemicals | New Hope vs. Jilin Jlu Communication |
| Zhangjiagang Elegant vs. Chinese Universe Publishing | Zhangjiagang Elegant vs. AUPU Home Style | Zhangjiagang Elegant vs. Shandong Publishing Media | Zhangjiagang Elegant vs. Qtone Education Group |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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