Correlation Between New Hope and Suzhou Mingzhi
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By analyzing existing cross correlation between New Hope Dairy and Suzhou Mingzhi Technology, you can compare the effects of market volatilities on New Hope and Suzhou Mingzhi 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 Suzhou Mingzhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Hope and Suzhou Mingzhi.
Diversification Opportunities for New Hope and Suzhou Mingzhi
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between New and Suzhou is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding New Hope Dairy and Suzhou Mingzhi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Mingzhi 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 Suzhou Mingzhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Mingzhi Technology has no effect on the direction of New Hope i.e., New Hope and Suzhou Mingzhi go up and down completely randomly.
Pair Corralation between New Hope and Suzhou Mingzhi
Assuming the 90 days trading horizon New Hope Dairy is expected to generate 0.74 times more return on investment than Suzhou Mingzhi. However, New Hope Dairy is 1.34 times less risky than Suzhou Mingzhi. It trades about 0.01 of its potential returns per unit of risk. Suzhou Mingzhi Technology is currently generating about -0.03 per unit of risk. If you would invest 1,252 in New Hope Dairy on August 24, 2024 and sell it today you would lose (23.00) from holding New Hope Dairy or give up 1.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Hope Dairy vs. Suzhou Mingzhi Technology
Performance |
| Timeline |
| New Hope Dairy |
| Suzhou Mingzhi Technology |
New Hope and Suzhou Mingzhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Hope and Suzhou Mingzhi
The main advantage of trading using opposite New Hope and Suzhou Mingzhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Hope position performs unexpectedly, Suzhou Mingzhi 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 Suzhou Mingzhi will offset losses from the drop in Suzhou Mingzhi's long position.| New Hope vs. Aluminum Corp of | New Hope vs. COL Digital Publishing | New Hope vs. Shaanxi Meineng Clean | New Hope vs. Gansu Huangtai Wine marketing |
| Suzhou Mingzhi vs. Chengdu Kanghua Biological | Suzhou Mingzhi vs. Beijing Wantai Biological | Suzhou Mingzhi vs. Suzhou Novoprotein Scientific | Suzhou Mingzhi vs. Aluminum Corp of |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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