Correlation Between HaiXin Foods and Shanghai Metersbonwe
Specify exactly 2 symbols:
By analyzing existing cross correlation between HaiXin Foods Co and Shanghai Metersbonwe FashionAccessories, you can compare the effects of market volatilities on HaiXin Foods and Shanghai Metersbonwe 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 Shanghai Metersbonwe. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Shanghai Metersbonwe.
Diversification Opportunities for HaiXin Foods and Shanghai Metersbonwe
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between HaiXin and Shanghai is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Shanghai Metersbonwe FashionAc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Metersbonwe 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 Shanghai Metersbonwe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Metersbonwe has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and Shanghai Metersbonwe go up and down completely randomly.
Pair Corralation between HaiXin Foods and Shanghai Metersbonwe
Assuming the 90 days trading horizon HaiXin Foods Co is expected to under-perform the Shanghai Metersbonwe. But the stock apears to be less risky and, when comparing its historical volatility, HaiXin Foods Co is 1.17 times less risky than Shanghai Metersbonwe. The stock trades about 0.0 of its potential returns per unit of risk. The Shanghai Metersbonwe FashionAccessories is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 207.00 in Shanghai Metersbonwe FashionAccessories on September 12, 2024 and sell it today you would earn a total of 46.00 from holding Shanghai Metersbonwe FashionAccessories or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HaiXin Foods Co vs. Shanghai Metersbonwe FashionAc
Performance |
| Timeline |
| HaiXin Foods |
| Shanghai Metersbonwe |
HaiXin Foods and Shanghai Metersbonwe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Shanghai Metersbonwe
The main advantage of trading using opposite HaiXin Foods and Shanghai Metersbonwe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, Shanghai Metersbonwe 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 Shanghai Metersbonwe will offset losses from the drop in Shanghai Metersbonwe'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 |
| Shanghai Metersbonwe vs. Lutian Machinery Co | Shanghai Metersbonwe vs. PetroChina Co Ltd | Shanghai Metersbonwe vs. Bank of China | Shanghai Metersbonwe vs. Gansu Jiu Steel |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |