Correlation Between Xiangpiaopiao Food and New Hope
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By analyzing existing cross correlation between Xiangpiaopiao Food Co and New Hope Dairy, you can compare the effects of market volatilities on Xiangpiaopiao Food 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 Xiangpiaopiao Food with a short position of New Hope. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangpiaopiao Food and New Hope.
Diversification Opportunities for Xiangpiaopiao Food and New Hope
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiangpiaopiao and New is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Xiangpiaopiao Food Co 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 Xiangpiaopiao Food 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 Xiangpiaopiao Food Co 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 Xiangpiaopiao Food i.e., Xiangpiaopiao Food and New Hope go up and down completely randomly.
Pair Corralation between Xiangpiaopiao Food and New Hope
Assuming the 90 days trading horizon Xiangpiaopiao Food is expected to generate 1.87 times less return on investment than New Hope. In addition to that, Xiangpiaopiao Food is 1.34 times more volatile than New Hope Dairy. It trades about 0.07 of its total potential returns per unit of risk. New Hope Dairy is currently generating about 0.18 per unit of volatility. If you would invest 809.00 in New Hope Dairy on October 26, 2024 and sell it today you would earn a total of 681.00 from holding New Hope Dairy or generate 84.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangpiaopiao Food Co vs. New Hope Dairy
Performance |
| Timeline |
| Xiangpiaopiao Food |
| New Hope Dairy |
Xiangpiaopiao Food and New Hope Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangpiaopiao Food and New Hope
The main advantage of trading using opposite Xiangpiaopiao Food and New Hope positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangpiaopiao Food 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.| Xiangpiaopiao Food vs. Kweichow Moutai Co | Xiangpiaopiao Food vs. Contemporary Amperex Technology | Xiangpiaopiao Food vs. G bits Network Technology | Xiangpiaopiao Food vs. Beijing Roborock Technology |
| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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