Correlation Between CITIC Guoan and HaiXin Foods
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By analyzing existing cross correlation between CITIC Guoan Information and HaiXin Foods Co, you can compare the effects of market volatilities on CITIC Guoan 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 CITIC Guoan with a short position of HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and HaiXin Foods.
Diversification Opportunities for CITIC Guoan and HaiXin Foods
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CITIC and HaiXin is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin Foods and CITIC Guoan 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 CITIC Guoan Information 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 CITIC Guoan i.e., CITIC Guoan and HaiXin Foods go up and down completely randomly.
Pair Corralation between CITIC Guoan and HaiXin Foods
Assuming the 90 days trading horizon CITIC Guoan Information is expected to generate 0.59 times more return on investment than HaiXin Foods. However, CITIC Guoan Information is 1.71 times less risky than HaiXin Foods. It trades about -0.21 of its potential returns per unit of risk. HaiXin Foods Co is currently generating about -0.3 per unit of risk. If you would invest 339.00 in CITIC Guoan Information on October 18, 2024 and sell it today you would lose (42.00) from holding CITIC Guoan Information or give up 12.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Guoan Information vs. HaiXin Foods Co
Performance |
| Timeline |
| CITIC Guoan Information |
| HaiXin Foods |
CITIC Guoan and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and HaiXin Foods
The main advantage of trading using opposite CITIC Guoan and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan 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.| CITIC Guoan vs. Marssenger Kitchenware Co | CITIC Guoan vs. Cangzhou Mingzhu Plastic | CITIC Guoan vs. BTG Hotels Group | CITIC Guoan vs. Ningbo Tip Rubber |
| HaiXin Foods vs. Harbin Air Conditioning | HaiXin Foods vs. Chengdu Xingrong Investment | HaiXin Foods vs. Jiangsu Yueda Investment | HaiXin Foods vs. Fuzhou Rockchip Electronics |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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