Correlation Between New Hope and Vohringer Home
Specify exactly 2 symbols:
By analyzing existing cross correlation between New Hope Dairy and Vohringer Home Technology, you can compare the effects of market volatilities on New Hope and Vohringer Home 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 Vohringer Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Hope and Vohringer Home.
Diversification Opportunities for New Hope and Vohringer Home
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between New and Vohringer is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding New Hope Dairy and Vohringer Home Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vohringer Home Technology 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 Vohringer Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vohringer Home Technology has no effect on the direction of New Hope i.e., New Hope and Vohringer Home go up and down completely randomly.
Pair Corralation between New Hope and Vohringer Home
Assuming the 90 days trading horizon New Hope Dairy is expected to generate 0.88 times more return on investment than Vohringer Home. However, New Hope Dairy is 1.14 times less risky than Vohringer Home. It trades about 0.01 of its potential returns per unit of risk. Vohringer Home Technology is currently generating about 0.01 per unit of risk. If you would invest 1,304 in New Hope Dairy on September 3, 2024 and sell it today you would lose (3.00) from holding New Hope Dairy or give up 0.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Hope Dairy vs. Vohringer Home Technology
Performance |
| Timeline |
| New Hope Dairy |
| Vohringer Home Technology |
New Hope and Vohringer Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Hope and Vohringer Home
The main advantage of trading using opposite New Hope and Vohringer Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Hope position performs unexpectedly, Vohringer Home 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 Vohringer Home will offset losses from the drop in Vohringer Home's long position.| New Hope vs. Beijing Wantai Biological | New Hope vs. Aluminum Corp of | New Hope vs. COL Digital Publishing | New Hope vs. Shaanxi Meineng Clean |
| Vohringer Home vs. Zijin Mining Group | Vohringer Home vs. Baoshan Iron Steel | Vohringer Home vs. Rongsheng Petrochemical Co | Vohringer Home vs. Hoshine Silicon Ind |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |