Correlation Between HaiXin Foods and TCL Corp
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By analyzing existing cross correlation between HaiXin Foods Co and TCL Corp, you can compare the effects of market volatilities on HaiXin Foods and TCL Corp 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 HaiXin Foods with a short position of TCL Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and TCL Corp.
Diversification Opportunities for HaiXin Foods and TCL Corp
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HaiXin and TCL is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and TCL Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TCL Corp and HaiXin Foods 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 HaiXin Foods Co are associated (or correlated) with TCL Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TCL Corp has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and TCL Corp go up and down completely randomly.
Pair Corralation between HaiXin Foods and TCL Corp
Assuming the 90 days trading horizon HaiXin Foods Co is expected to generate 1.62 times more return on investment than TCL Corp. However, HaiXin Foods is 1.62 times more volatile than TCL Corp. It trades about 0.27 of its potential returns per unit of risk. TCL Corp is currently generating about -0.18 per unit of risk. If you would invest 445.00 in HaiXin Foods Co on September 12, 2024 and sell it today you would earn a total of 91.00 from holding HaiXin Foods Co or generate 20.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HaiXin Foods Co vs. TCL Corp
Performance |
| Timeline |
| HaiXin Foods |
| TCL Corp |
HaiXin Foods and TCL Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and TCL Corp
The main advantage of trading using opposite HaiXin Foods and TCL Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, TCL Corp 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 TCL Corp will offset losses from the drop in TCL Corp's long position.| HaiXin Foods vs. China Petroleum Chemical | HaiXin Foods vs. PetroChina Co Ltd | HaiXin Foods vs. China State Construction | HaiXin Foods vs. China Railway Group |
| TCL Corp vs. Lutian Machinery Co | TCL Corp vs. PetroChina Co Ltd | TCL Corp vs. Bank of China | TCL Corp vs. Gansu Jiu Steel |
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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