Correlation Between Shandong Polymer and HaiXin Foods
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By analyzing existing cross correlation between Shandong Polymer Biochemicals and HaiXin Foods Co, you can compare the effects of market volatilities on Shandong Polymer 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 Shandong Polymer with a short position of HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Polymer and HaiXin Foods.
Diversification Opportunities for Shandong Polymer and HaiXin Foods
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and HaiXin is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Polymer Biochemicals and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin Foods and Shandong Polymer 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 Shandong Polymer Biochemicals 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 Shandong Polymer i.e., Shandong Polymer and HaiXin Foods go up and down completely randomly.
Pair Corralation between Shandong Polymer and HaiXin Foods
Assuming the 90 days trading horizon Shandong Polymer Biochemicals is expected to generate 0.5 times more return on investment than HaiXin Foods. However, Shandong Polymer Biochemicals is 1.99 times less risky than HaiXin Foods. It trades about -0.29 of its potential returns per unit of risk. HaiXin Foods Co is currently generating about -0.23 per unit of risk. If you would invest 492.00 in Shandong Polymer Biochemicals on October 12, 2024 and sell it today you would lose (82.00) from holding Shandong Polymer Biochemicals or give up 16.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Polymer Biochemicals vs. HaiXin Foods Co
Performance |
| Timeline |
| Shandong Polymer Bio |
| HaiXin Foods |
Shandong Polymer and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Polymer and HaiXin Foods
The main advantage of trading using opposite Shandong Polymer and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Polymer 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.| Shandong Polymer vs. Zijin Mining Group | Shandong Polymer vs. Wanhua Chemical Group | Shandong Polymer vs. Baoshan Iron Steel | Shandong Polymer vs. Rongsheng Petrochemical Co |
| HaiXin Foods vs. Masterwork Machinery | HaiXin Foods vs. Xingguang Agricultural Mach | HaiXin Foods vs. Kuangda Technology Group | HaiXin Foods vs. Shaanxi Construction Machinery |
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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