Correlation Between New Hope and Shanghai CEO
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By analyzing existing cross correlation between New Hope Dairy and Shanghai CEO Environmental, you can compare the effects of market volatilities on New Hope and Shanghai CEO 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 Shanghai CEO. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Hope and Shanghai CEO.
Diversification Opportunities for New Hope and Shanghai CEO
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between New and Shanghai is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding New Hope Dairy and Shanghai CEO Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai CEO Environ 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 Shanghai CEO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai CEO Environ has no effect on the direction of New Hope i.e., New Hope and Shanghai CEO go up and down completely randomly.
Pair Corralation between New Hope and Shanghai CEO
Assuming the 90 days trading horizon New Hope Dairy is expected to generate 1.15 times more return on investment than Shanghai CEO. However, New Hope is 1.15 times more volatile than Shanghai CEO Environmental. It trades about 0.09 of its potential returns per unit of risk. Shanghai CEO Environmental is currently generating about -0.04 per unit of risk. If you would invest 1,229 in New Hope Dairy on August 29, 2024 and sell it today you would earn a total of 60.00 from holding New Hope Dairy or generate 4.88% 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. Shanghai CEO Environmental
Performance |
| Timeline |
| New Hope Dairy |
| Shanghai CEO Environ |
New Hope and Shanghai CEO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Hope and Shanghai CEO
The main advantage of trading using opposite New Hope and Shanghai CEO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Hope position performs unexpectedly, Shanghai CEO 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 Shanghai CEO will offset losses from the drop in Shanghai CEO's long position.| New Hope vs. China Petroleum Chemical | New Hope vs. PetroChina Co Ltd | New Hope vs. China State Construction | New Hope vs. China Railway Group |
| Shanghai CEO vs. Kweichow Moutai Co | Shanghai CEO vs. Shenzhen Mindray Bio Medical | Shanghai CEO vs. G bits Network Technology | Shanghai CEO vs. Shenzhen Transsion 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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