Correlation Between New Hope and Jinzhou Port
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By analyzing existing cross correlation between New Hope Dairy and Jinzhou Port Co, you can compare the effects of market volatilities on New Hope and Jinzhou Port 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 Jinzhou Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Hope and Jinzhou Port.
Diversification Opportunities for New Hope and Jinzhou Port
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between New and Jinzhou is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding New Hope Dairy and Jinzhou Port Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinzhou Port 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 Jinzhou Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinzhou Port has no effect on the direction of New Hope i.e., New Hope and Jinzhou Port go up and down completely randomly.
Pair Corralation between New Hope and Jinzhou Port
Assuming the 90 days trading horizon New Hope Dairy is expected to generate 0.94 times more return on investment than Jinzhou Port. However, New Hope Dairy is 1.07 times less risky than Jinzhou Port. It trades about 0.01 of its potential returns per unit of risk. Jinzhou Port Co is currently generating about -0.05 per unit of risk. If you would invest 1,328 in New Hope Dairy on September 4, 2024 and sell it today you would lose (12.00) from holding New Hope Dairy or give up 0.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Hope Dairy vs. Jinzhou Port Co
Performance |
| Timeline |
| New Hope Dairy |
| Jinzhou Port |
New Hope and Jinzhou Port Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Hope and Jinzhou Port
The main advantage of trading using opposite New Hope and Jinzhou Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Hope position performs unexpectedly, Jinzhou Port 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 Jinzhou Port will offset losses from the drop in Jinzhou Port's long position.| New Hope vs. Poly Real Estate | New Hope vs. China Vanke Co | New Hope vs. China Merchants Shekou | New Hope vs. Huafa Industrial Co |
| Jinzhou Port vs. Sanbo Hospital Management | Jinzhou Port vs. Shandong Sinoglory Health | Jinzhou Port vs. Hangzhou Gaoxin Rubber | Jinzhou Port vs. Guangdong Qunxing Toys |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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