Correlation Between HaiXin Foods and Henan Shuanghui
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By analyzing existing cross correlation between HaiXin Foods Co and Henan Shuanghui Investment, you can compare the effects of market volatilities on HaiXin Foods and Henan Shuanghui 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 Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Henan Shuanghui.
Diversification Opportunities for HaiXin Foods and Henan Shuanghui
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HaiXin and Henan is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Henan Shuanghui Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shuanghui Inve 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 Henan Shuanghui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shuanghui Inve has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and Henan Shuanghui go up and down completely randomly.
Pair Corralation between HaiXin Foods and Henan Shuanghui
Assuming the 90 days trading horizon HaiXin Foods Co is expected to under-perform the Henan Shuanghui. In addition to that, HaiXin Foods is 1.51 times more volatile than Henan Shuanghui Investment. It trades about -0.02 of its total potential returns per unit of risk. Henan Shuanghui Investment is currently generating about 0.09 per unit of volatility. If you would invest 2,542 in Henan Shuanghui Investment on November 22, 2024 and sell it today you would earn a total of 53.00 from holding Henan Shuanghui Investment or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HaiXin Foods Co vs. Henan Shuanghui Investment
Performance |
| Timeline |
| HaiXin Foods |
| Henan Shuanghui Inve |
HaiXin Foods and Henan Shuanghui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Henan Shuanghui
The main advantage of trading using opposite HaiXin Foods and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, Henan Shuanghui 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 Henan Shuanghui will offset losses from the drop in Henan Shuanghui's long position.| HaiXin Foods vs. Guangdong Jingyi Metal | HaiXin Foods vs. Gem Year Industrial Co | HaiXin Foods vs. Pengxin International Mining | HaiXin Foods vs. Qijing Machinery |
| Henan Shuanghui vs. Double Medical Technology | Henan Shuanghui vs. Linewell Software Co | Henan Shuanghui vs. Chison Medical Technologies | Henan Shuanghui vs. Eyebright Medical Technology |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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