Correlation Between Jiangsu Jinling and New Hope
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By analyzing existing cross correlation between Jiangsu Jinling Sports and New Hope Dairy, you can compare the effects of market volatilities on Jiangsu Jinling 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 Jinling with a short position of New Hope. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and New Hope.
Diversification Opportunities for Jiangsu Jinling and New Hope
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and New is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports 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 Jiangsu Jinling 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 Jinling Sports 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 Jiangsu Jinling i.e., Jiangsu Jinling and New Hope go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and New Hope
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to generate 1.08 times more return on investment than New Hope. However, Jiangsu Jinling is 1.08 times more volatile than New Hope Dairy. It trades about 0.26 of its potential returns per unit of risk. New Hope Dairy is currently generating about 0.13 per unit of risk. If you would invest 1,322 in Jiangsu Jinling Sports on September 1, 2024 and sell it today you would earn a total of 187.00 from holding Jiangsu Jinling Sports or generate 14.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. New Hope Dairy
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| New Hope Dairy |
Jiangsu Jinling and New Hope Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and New Hope
The main advantage of trading using opposite Jiangsu Jinling and New Hope positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling 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 Jinling vs. Nanjing Putian Telecommunications | Jiangsu Jinling vs. Shenzhen Hifuture Electric | Jiangsu Jinling vs. Tianjin Realty Development | Jiangsu Jinling vs. Shenyang Huitian Thermal |
| New Hope vs. Nanjing Putian Telecommunications | New Hope vs. Shenzhen Hifuture Electric | New Hope vs. Tianjin Realty Development | New Hope vs. Shenyang Huitian Thermal |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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