Correlation Between HaiXin Foods and Guocheng Mining
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By analyzing existing cross correlation between HaiXin Foods Co and Guocheng Mining Co, you can compare the effects of market volatilities on HaiXin Foods and Guocheng Mining 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 Guocheng Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Guocheng Mining.
Diversification Opportunities for HaiXin Foods and Guocheng Mining
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HaiXin and Guocheng is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Guocheng Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guocheng Mining 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 Guocheng Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guocheng Mining has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and Guocheng Mining go up and down completely randomly.
Pair Corralation between HaiXin Foods and Guocheng Mining
Assuming the 90 days trading horizon HaiXin Foods Co is expected to generate 0.94 times more return on investment than Guocheng Mining. However, HaiXin Foods Co is 1.06 times less risky than Guocheng Mining. It trades about 0.41 of its potential returns per unit of risk. Guocheng Mining Co is currently generating about 0.24 per unit of risk. If you would invest 431.00 in HaiXin Foods Co on September 13, 2024 and sell it today you would earn a total of 159.00 from holding HaiXin Foods Co or generate 36.89% 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. Guocheng Mining Co
Performance |
| Timeline |
| HaiXin Foods |
| Guocheng Mining |
HaiXin Foods and Guocheng Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Guocheng Mining
The main advantage of trading using opposite HaiXin Foods and Guocheng Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, Guocheng Mining 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 Guocheng Mining will offset losses from the drop in Guocheng Mining's long position.| HaiXin Foods vs. Nanjing Putian Telecommunications | HaiXin Foods vs. Tianjin Realty Development | HaiXin Foods vs. Kangyue Technology Co | HaiXin Foods vs. Shenzhen Hifuture Electric |
| Guocheng Mining vs. Cambricon Technologies Corp | Guocheng Mining vs. Loongson Technology Corp | Guocheng Mining vs. Shenzhen Fortune Trend | Guocheng Mining vs. Chongqing Road Bridge |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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