Correlation Between HaiXin Foods and 5I5j Holding
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By analyzing existing cross correlation between HaiXin Foods Co and 5I5j Holding Group, you can compare the effects of market volatilities on HaiXin Foods and 5I5j Holding 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 5I5j Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and 5I5j Holding.
Diversification Opportunities for HaiXin Foods and 5I5j Holding
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HaiXin and 5I5j is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and 5I5j Holding Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 5I5j Holding Group 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 5I5j Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 5I5j Holding Group has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and 5I5j Holding go up and down completely randomly.
Pair Corralation between HaiXin Foods and 5I5j Holding
Assuming the 90 days trading horizon HaiXin Foods Co is expected to under-perform the 5I5j Holding. In addition to that, HaiXin Foods is 1.07 times more volatile than 5I5j Holding Group. It trades about -0.06 of its total potential returns per unit of risk. 5I5j Holding Group is currently generating about 0.13 per unit of volatility. If you would invest 290.00 in 5I5j Holding Group on November 7, 2024 and sell it today you would earn a total of 15.00 from holding 5I5j Holding Group or generate 5.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
HaiXin Foods Co vs. 5I5j Holding Group
Performance |
| Timeline |
| HaiXin Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| 5I5j Holding Group |
HaiXin Foods and 5I5j Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and 5I5j Holding
The main advantage of trading using opposite HaiXin Foods and 5I5j Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, 5I5j Holding 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 5I5j Holding will offset losses from the drop in 5I5j Holding's long position.The idea behind HaiXin Foods Co and 5I5j Holding Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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