Correlation Between Sichuan Yahua and HaiXin Foods
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By analyzing existing cross correlation between Sichuan Yahua Industrial and HaiXin Foods Co, you can compare the effects of market volatilities on Sichuan Yahua 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 Sichuan Yahua with a short position of HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Yahua and HaiXin Foods.
Diversification Opportunities for Sichuan Yahua and HaiXin Foods
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sichuan and HaiXin is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Yahua Industrial and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin Foods and Sichuan Yahua 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 Sichuan Yahua Industrial 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 Sichuan Yahua i.e., Sichuan Yahua and HaiXin Foods go up and down completely randomly.
Pair Corralation between Sichuan Yahua and HaiXin Foods
Assuming the 90 days trading horizon Sichuan Yahua Industrial is expected to generate 0.52 times more return on investment than HaiXin Foods. However, Sichuan Yahua Industrial is 1.93 times less risky than HaiXin Foods. It trades about -0.17 of its potential returns per unit of risk. HaiXin Foods Co is currently generating about -0.24 per unit of risk. If you would invest 1,282 in Sichuan Yahua Industrial on October 12, 2024 and sell it today you would lose (138.00) from holding Sichuan Yahua Industrial or give up 10.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Yahua Industrial vs. HaiXin Foods Co
Performance |
| Timeline |
| Sichuan Yahua Industrial |
| HaiXin Foods |
Sichuan Yahua and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Yahua and HaiXin Foods
The main advantage of trading using opposite Sichuan Yahua and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Yahua 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.| Sichuan Yahua vs. Allwin Telecommunication Co | Sichuan Yahua vs. Jilin Jlu Communication | Sichuan Yahua vs. Bank of Communications | Sichuan Yahua vs. JuneYao Dairy Co |
| HaiXin Foods vs. Zhengzhou Coal Mining | HaiXin Foods vs. Western Metal Materials | HaiXin Foods vs. Gem Year Industrial Co | HaiXin Foods vs. Sichuan Yahua Industrial |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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