Correlation Between Fujian Longzhou and HaiXin Foods
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By analyzing existing cross correlation between Fujian Longzhou Transportation and HaiXin Foods Co, you can compare the effects of market volatilities on Fujian Longzhou 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 Fujian Longzhou with a short position of HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and HaiXin Foods.
Diversification Opportunities for Fujian Longzhou and HaiXin Foods
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fujian and HaiXin is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin Foods and Fujian Longzhou 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 Fujian Longzhou Transportation 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 Fujian Longzhou i.e., Fujian Longzhou and HaiXin Foods go up and down completely randomly.
Pair Corralation between Fujian Longzhou and HaiXin Foods
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to generate 0.81 times more return on investment than HaiXin Foods. However, Fujian Longzhou Transportation is 1.24 times less risky than HaiXin Foods. It trades about -0.09 of its potential returns per unit of risk. HaiXin Foods Co is currently generating about -0.08 per unit of risk. If you would invest 453.00 in Fujian Longzhou Transportation on October 24, 2024 and sell it today you would lose (31.00) from holding Fujian Longzhou Transportation or give up 6.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Longzhou Transportation vs. HaiXin Foods Co
Performance |
| Timeline |
| Fujian Longzhou Tran |
| HaiXin Foods |
Fujian Longzhou and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and HaiXin Foods
The main advantage of trading using opposite Fujian Longzhou and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou 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.| Fujian Longzhou vs. Nuode Investment Co | Fujian Longzhou vs. Shenzhen Bioeasy Biotechnology | Fujian Longzhou vs. Shanghai Rightongene Biotechnology | Fujian Longzhou vs. Chengdu Xingrong Investment |
| HaiXin Foods vs. Ningbo Fujia Industrial | HaiXin Foods vs. Fujian Longzhou Transportation | HaiXin Foods vs. Western Metal Materials | HaiXin Foods vs. Universal Scientific 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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