Correlation Between HaiXin Foods and Guangzhou Seagull
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By analyzing existing cross correlation between HaiXin Foods Co and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on HaiXin Foods and Guangzhou Seagull 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 Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Guangzhou Seagull.
Diversification Opportunities for HaiXin Foods and Guangzhou Seagull
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HaiXin and Guangzhou is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen 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 Guangzhou Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between HaiXin Foods and Guangzhou Seagull
Assuming the 90 days trading horizon HaiXin Foods Co is expected to under-perform the Guangzhou Seagull. In addition to that, HaiXin Foods is 1.11 times more volatile than Guangzhou Seagull Kitchen. It trades about 0.0 of its total potential returns per unit of risk. Guangzhou Seagull Kitchen is currently generating about 0.04 per unit of volatility. If you would invest 256.00 in Guangzhou Seagull Kitchen on October 12, 2024 and sell it today you would earn a total of 44.00 from holding Guangzhou Seagull Kitchen or generate 17.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HaiXin Foods Co vs. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| HaiXin Foods |
| Guangzhou Seagull Kitchen |
HaiXin Foods and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Guangzhou Seagull
The main advantage of trading using opposite HaiXin Foods and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, Guangzhou Seagull 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 Guangzhou Seagull will offset losses from the drop in Guangzhou Seagull's long position.| HaiXin Foods vs. Zhengzhou Coal Mining | HaiXin Foods vs. Western Metal Materials | HaiXin Foods vs. Gem Year Industrial Co | HaiXin Foods vs. Sichuan Yahua Industrial |
| Guangzhou Seagull vs. Jiahe Foods Industry | Guangzhou Seagull vs. Chongqing Changan Automobile | Guangzhou Seagull vs. Beijing Sanyuan Foods | Guangzhou Seagull vs. HaiXin Foods 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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