Correlation Between Jiangsu Hoperun and New Hope
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By analyzing existing cross correlation between Jiangsu Hoperun Software and New Hope Liuhe, you can compare the effects of market volatilities on Jiangsu Hoperun 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 Jiangsu Hoperun with a short position of New Hope. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Hoperun and New Hope.
Diversification Opportunities for Jiangsu Hoperun and New Hope
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and New is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Hoperun Software and New Hope Liuhe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Hope Liuhe and Jiangsu Hoperun 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 Jiangsu Hoperun Software 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 Liuhe has no effect on the direction of Jiangsu Hoperun i.e., Jiangsu Hoperun and New Hope go up and down completely randomly.
Pair Corralation between Jiangsu Hoperun and New Hope
Assuming the 90 days trading horizon Jiangsu Hoperun Software is expected to generate 1.52 times more return on investment than New Hope. However, Jiangsu Hoperun is 1.52 times more volatile than New Hope Liuhe. It trades about 0.29 of its potential returns per unit of risk. New Hope Liuhe is currently generating about 0.25 per unit of risk. If you would invest 4,782 in Jiangsu Hoperun Software on November 28, 2024 and sell it today you would earn a total of 1,220 from holding Jiangsu Hoperun Software or generate 25.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Hoperun Software vs. New Hope Liuhe
Performance |
| Timeline |
| Jiangsu Hoperun Software |
| New Hope Liuhe |
Jiangsu Hoperun and New Hope Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Hoperun and New Hope
The main advantage of trading using opposite Jiangsu Hoperun and New Hope positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Hoperun 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.| Jiangsu Hoperun vs. Healthcare Co | Jiangsu Hoperun vs. MayAir Technology Co | Jiangsu Hoperun vs. Shenzhen Topway Video | Jiangsu Hoperun vs. Dezhan HealthCare Co |
| New Hope vs. Gansu Huangtai Wine marketing | New Hope vs. Cofoe Medical Technology | New Hope vs. Xian International Medical | New Hope vs. Qijing Machinery |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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