Correlation Between HaiXin Foods and Zhejiang Qianjiang
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By analyzing existing cross correlation between HaiXin Foods Co and Zhejiang Qianjiang Motorcycle, you can compare the effects of market volatilities on HaiXin Foods and Zhejiang Qianjiang 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 Zhejiang Qianjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Zhejiang Qianjiang.
Diversification Opportunities for HaiXin Foods and Zhejiang Qianjiang
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HaiXin and Zhejiang is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Zhejiang Qianjiang Motorcycle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Qianjiang 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 Zhejiang Qianjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Qianjiang has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and Zhejiang Qianjiang go up and down completely randomly.
Pair Corralation between HaiXin Foods and Zhejiang Qianjiang
Assuming the 90 days trading horizon HaiXin Foods Co is expected to under-perform the Zhejiang Qianjiang. But the stock apears to be less risky and, when comparing its historical volatility, HaiXin Foods Co is 1.11 times less risky than Zhejiang Qianjiang. The stock trades about -0.02 of its potential returns per unit of risk. The Zhejiang Qianjiang Motorcycle is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,949 in Zhejiang Qianjiang Motorcycle on August 27, 2024 and sell it today you would lose (309.00) from holding Zhejiang Qianjiang Motorcycle or give up 15.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HaiXin Foods Co vs. Zhejiang Qianjiang Motorcycle
Performance |
| Timeline |
| HaiXin Foods |
| Zhejiang Qianjiang |
HaiXin Foods and Zhejiang Qianjiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Zhejiang Qianjiang
The main advantage of trading using opposite HaiXin Foods and Zhejiang Qianjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, Zhejiang Qianjiang 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 Zhejiang Qianjiang will offset losses from the drop in Zhejiang Qianjiang'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 |
| Zhejiang Qianjiang vs. Western Metal Materials | Zhejiang Qianjiang vs. Guangdong Jingyi Metal | Zhejiang Qianjiang vs. Minmetals Capital Co | Zhejiang Qianjiang vs. Xiandai Investment Co |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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