Correlation Between New Hope and Shenzhen Fortune
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By analyzing existing cross correlation between New Hope Dairy and Shenzhen Fortune Trend, you can compare the effects of market volatilities on New Hope and Shenzhen Fortune 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 Shenzhen Fortune. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Hope and Shenzhen Fortune.
Diversification Opportunities for New Hope and Shenzhen Fortune
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between New and Shenzhen is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding New Hope Dairy and Shenzhen Fortune Trend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Fortune Trend 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 Shenzhen Fortune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Fortune Trend has no effect on the direction of New Hope i.e., New Hope and Shenzhen Fortune go up and down completely randomly.
Pair Corralation between New Hope and Shenzhen Fortune
Assuming the 90 days trading horizon New Hope Dairy is expected to generate 0.71 times more return on investment than Shenzhen Fortune. However, New Hope Dairy is 1.4 times less risky than Shenzhen Fortune. It trades about 0.26 of its potential returns per unit of risk. Shenzhen Fortune Trend is currently generating about 0.06 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Hope Dairy vs. Shenzhen Fortune Trend
Performance |
| Timeline |
| New Hope Dairy |
| Shenzhen Fortune Trend |
New Hope and Shenzhen Fortune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Hope and Shenzhen Fortune
The main advantage of trading using opposite New Hope and Shenzhen Fortune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Hope position performs unexpectedly, Shenzhen Fortune 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 Shenzhen Fortune will offset losses from the drop in Shenzhen Fortune'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 |
| Shenzhen Fortune vs. Guocheng Mining Co | Shenzhen Fortune vs. Jiangxi Naipu Mining | Shenzhen Fortune vs. Xinhua Winshare Publishing | Shenzhen Fortune vs. Huaibei Mining Holdings |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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