Correlation Between HaiXin Foods and Hengkang Medical
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By analyzing existing cross correlation between HaiXin Foods Co and Hengkang Medical Group, you can compare the effects of market volatilities on HaiXin Foods and Hengkang Medical 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 Hengkang Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Hengkang Medical.
Diversification Opportunities for HaiXin Foods and Hengkang Medical
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HaiXin and Hengkang is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Hengkang Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengkang Medical 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 Hengkang Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengkang Medical has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and Hengkang Medical go up and down completely randomly.
Pair Corralation between HaiXin Foods and Hengkang Medical
Assuming the 90 days trading horizon HaiXin Foods Co is expected to under-perform the Hengkang Medical. In addition to that, HaiXin Foods is 1.93 times more volatile than Hengkang Medical Group. It trades about -0.08 of its total potential returns per unit of risk. Hengkang Medical Group is currently generating about -0.14 per unit of volatility. If you would invest 264.00 in Hengkang Medical Group on November 1, 2024 and sell it today you would lose (16.00) from holding Hengkang Medical Group or give up 6.06% 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. Hengkang Medical Group
Performance |
| Timeline |
| HaiXin Foods |
| Hengkang Medical |
HaiXin Foods and Hengkang Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Hengkang Medical
The main advantage of trading using opposite HaiXin Foods and Hengkang Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, Hengkang Medical 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 Hengkang Medical will offset losses from the drop in Hengkang Medical's long position.| HaiXin Foods vs. Guangdong Jingyi Metal | HaiXin Foods vs. Shuhua Sports Co | HaiXin Foods vs. Zhejiang Yongjin Metal | HaiXin Foods vs. Tianshan Aluminum Group |
| Hengkang Medical vs. Easyhome New Retail | Hengkang Medical vs. HaiXin Foods Co | Hengkang Medical vs. Gan Yuan Foods | Hengkang Medical vs. Eastroc Beverage Group |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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