Correlation Between New Hope and BOE Technology
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By analyzing existing cross correlation between New Hope Dairy and BOE Technology Group, you can compare the effects of market volatilities on New Hope and BOE Technology 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 New Hope with a short position of BOE Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Hope and BOE Technology.
Diversification Opportunities for New Hope and BOE Technology
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between New and BOE is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding New Hope Dairy and BOE Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOE Technology Group and New Hope 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 New Hope Dairy are associated (or correlated) with BOE Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOE Technology Group has no effect on the direction of New Hope i.e., New Hope and BOE Technology go up and down completely randomly.
Pair Corralation between New Hope and BOE Technology
Assuming the 90 days trading horizon New Hope Dairy is expected to generate 3.84 times more return on investment than BOE Technology. However, New Hope is 3.84 times more volatile than BOE Technology Group. It trades about 0.19 of its potential returns per unit of risk. BOE Technology Group is currently generating about 0.18 per unit of risk. If you would invest 1,240 in New Hope Dairy on September 25, 2024 and sell it today you would earn a total of 181.00 from holding New Hope Dairy or generate 14.6% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
New Hope Dairy vs. BOE Technology Group
Performance |
Timeline |
New Hope Dairy |
BOE Technology Group |
New Hope and BOE Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with New Hope and BOE Technology
The main advantage of trading using opposite New Hope and BOE Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Hope position performs unexpectedly, BOE Technology 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 BOE Technology will offset losses from the drop in BOE Technology's long position.New Hope vs. Jiujiang Shanshui Technology | New Hope vs. Niutech Environment Technology | New Hope vs. Kuang Chi Technologies | New Hope vs. Fujian Newland Computer |
BOE Technology vs. Industrial and Commercial | BOE Technology vs. China Construction Bank | BOE Technology vs. Agricultural Bank of | BOE Technology vs. Bank of China |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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