Correlation Between Hubei Geoway and New Hope
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hubei Geoway Investment and New Hope Dairy, you can compare the effects of market volatilities on Hubei Geoway 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 Hubei Geoway with a short position of New Hope. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and New Hope.
Diversification Opportunities for Hubei Geoway and New Hope
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hubei and New is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment 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 Hubei Geoway 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 Hubei Geoway Investment 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 Hubei Geoway i.e., Hubei Geoway and New Hope go up and down completely randomly.
Pair Corralation between Hubei Geoway and New Hope
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to under-perform the New Hope. In addition to that, Hubei Geoway is 1.07 times more volatile than New Hope Dairy. It trades about -0.01 of its total potential returns per unit of risk. New Hope Dairy is currently generating about 0.02 per unit of volatility. If you would invest 1,297 in New Hope Dairy on October 26, 2024 and sell it today you would earn a total of 153.00 from holding New Hope Dairy or generate 11.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Geoway Investment vs. New Hope Dairy
Performance |
| Timeline |
| Hubei Geoway Investment |
| New Hope Dairy |
Hubei Geoway and New Hope Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and New Hope
The main advantage of trading using opposite Hubei Geoway and New Hope positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway 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.| Hubei Geoway vs. Zijin Mining Group | Hubei Geoway vs. Wanhua Chemical Group | Hubei Geoway vs. Baoshan Iron Steel | Hubei Geoway vs. Shandong Gold Mining |
| New Hope vs. Kweichow Moutai Co | New Hope vs. Contemporary Amperex Technology | New Hope vs. G bits Network Technology | New Hope vs. Beijing Roborock Technology |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |