Correlation Between Gansu Huangtai and HaiXin Foods
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and HaiXin Foods Co, you can compare the effects of market volatilities on Gansu Huangtai 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 Gansu Huangtai with a short position of HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and HaiXin Foods.
Diversification Opportunities for Gansu Huangtai and HaiXin Foods
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gansu and HaiXin is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin Foods and Gansu Huangtai 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 Gansu Huangtai Wine marketing 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 Gansu Huangtai i.e., Gansu Huangtai and HaiXin Foods go up and down completely randomly.
Pair Corralation between Gansu Huangtai and HaiXin Foods
Assuming the 90 days trading horizon Gansu Huangtai is expected to generate 1.53 times less return on investment than HaiXin Foods. In addition to that, Gansu Huangtai is 1.08 times more volatile than HaiXin Foods Co. It trades about 0.09 of its total potential returns per unit of risk. HaiXin Foods Co is currently generating about 0.16 per unit of volatility. If you would invest 383.00 in HaiXin Foods Co on August 29, 2024 and sell it today you would earn a total of 48.00 from holding HaiXin Foods Co or generate 12.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Huangtai Wine marketing vs. HaiXin Foods Co
Performance |
| Timeline |
| Gansu Huangtai Wine |
| HaiXin Foods |
Gansu Huangtai and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and HaiXin Foods
The main advantage of trading using opposite Gansu Huangtai and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai 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.| Gansu Huangtai vs. Industrial and Commercial | Gansu Huangtai vs. China Construction Bank | Gansu Huangtai vs. Bank of China | Gansu Huangtai vs. Agricultural Bank of |
| HaiXin Foods vs. China Petroleum Chemical | HaiXin Foods vs. PetroChina Co Ltd | HaiXin Foods vs. China State Construction | HaiXin Foods vs. China Railway Group |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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