Correlation Between China Vanke and HaiXin Foods
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By analyzing existing cross correlation between China Vanke Co and HaiXin Foods Co, you can compare the effects of market volatilities on China Vanke and HaiXin Foods 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 China Vanke with a short position of HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Vanke and HaiXin Foods.
Diversification Opportunities for China Vanke and HaiXin Foods
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and HaiXin is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding China Vanke Co and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin Foods and China Vanke 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 China Vanke Co are associated (or correlated) with HaiXin Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HaiXin Foods has no effect on the direction of China Vanke i.e., China Vanke and HaiXin Foods go up and down completely randomly.
Pair Corralation between China Vanke and HaiXin Foods
Assuming the 90 days trading horizon China Vanke Co is expected to under-perform the HaiXin Foods. But the stock apears to be less risky and, when comparing its historical volatility, China Vanke Co is 2.01 times less risky than HaiXin Foods. The stock trades about -0.08 of its potential returns per unit of risk. The HaiXin Foods Co is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 391.00 in HaiXin Foods Co on September 5, 2024 and sell it today you would earn a total of 69.00 from holding HaiXin Foods Co or generate 17.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Vanke Co vs. HaiXin Foods Co
Performance |
| Timeline |
| China Vanke |
| HaiXin Foods |
China Vanke and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Vanke and HaiXin Foods
The main advantage of trading using opposite China Vanke and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Vanke position performs unexpectedly, HaiXin Foods 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 HaiXin Foods will offset losses from the drop in HaiXin Foods' long position.| China Vanke vs. Nanjing Putian Telecommunications | China Vanke vs. Tianjin Realty Development | China Vanke vs. Shenyang Huitian Thermal | China Vanke vs. Shenzhen Changfang Light |
| HaiXin Foods vs. Poly Real Estate | HaiXin Foods vs. China Vanke Co | HaiXin Foods vs. China Merchants Shekou | HaiXin Foods vs. Huafa Industrial Co |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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