Correlation Between 159681 and New Hope
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By analyzing existing cross correlation between 159681 and New Hope Dairy, you can compare the effects of market volatilities on 159681 and New Hope 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 159681 with a short position of New Hope. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and New Hope.
Diversification Opportunities for 159681 and New Hope
Good diversification
The 3 months correlation between 159681 and New is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and New Hope Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Hope Dairy and 159681 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 159681 are associated (or correlated) with New Hope. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Hope Dairy has no effect on the direction of 159681 i.e., 159681 and New Hope go up and down completely randomly.
Pair Corralation between 159681 and New Hope
Assuming the 90 days trading horizon 159681 is expected to under-perform the New Hope. But the etf apears to be less risky and, when comparing its historical volatility, 159681 is 2.45 times less risky than New Hope. The etf trades about -0.49 of its potential returns per unit of risk. The New Hope Dairy is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,532 in New Hope Dairy on October 14, 2024 and sell it today you would earn a total of 41.00 from holding New Hope Dairy or generate 2.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
159681 vs. New Hope Dairy
Performance |
| Timeline |
| 159681 |
| New Hope Dairy |
159681 and New Hope Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159681 and New Hope
The main advantage of trading using opposite 159681 and New Hope positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 position performs unexpectedly, New Hope 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 New Hope will offset losses from the drop in New Hope's long position.The idea behind 159681 and New Hope Dairy pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| New Hope vs. Fibocom Wireless | New Hope vs. Guangzhou Haige Communications | New Hope vs. Songz Automobile Air | New Hope vs. Sportsoul Co Ltd |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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