Correlation Between Zhejiang Kingland and HaiXin Foods
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By analyzing existing cross correlation between Zhejiang Kingland Pipeline and HaiXin Foods Co, you can compare the effects of market volatilities on Zhejiang Kingland 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 Zhejiang Kingland with a short position of HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Kingland and HaiXin Foods.
Diversification Opportunities for Zhejiang Kingland and HaiXin Foods
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and HaiXin is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Kingland Pipeline and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin Foods and Zhejiang Kingland 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 Zhejiang Kingland Pipeline 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 Zhejiang Kingland i.e., Zhejiang Kingland and HaiXin Foods go up and down completely randomly.
Pair Corralation between Zhejiang Kingland and HaiXin Foods
Assuming the 90 days trading horizon Zhejiang Kingland Pipeline is expected to generate 0.75 times more return on investment than HaiXin Foods. However, Zhejiang Kingland Pipeline is 1.33 times less risky than HaiXin Foods. It trades about 0.01 of its potential returns per unit of risk. HaiXin Foods Co is currently generating about 0.0 per unit of risk. If you would invest 640.00 in Zhejiang Kingland Pipeline on August 31, 2024 and sell it today you would lose (1.00) from holding Zhejiang Kingland Pipeline or give up 0.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Kingland Pipeline vs. HaiXin Foods Co
Performance |
| Timeline |
| Zhejiang Kingland |
| HaiXin Foods |
Zhejiang Kingland and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Kingland and HaiXin Foods
The main advantage of trading using opposite Zhejiang Kingland and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Kingland 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.| Zhejiang Kingland vs. Do Fluoride Chemicals Co | Zhejiang Kingland vs. Der International Home | Zhejiang Kingland vs. Markor International Home | Zhejiang Kingland vs. Shanghai Shuixing Home |
| HaiXin Foods vs. Linewell Software Co | HaiXin Foods vs. Zhongshan Public Utilities | HaiXin Foods vs. Maxvision Technology Corp | HaiXin Foods vs. Tianshui Huatian 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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