Correlation Between HaiXin Foods and Zhejiang Kingland
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By analyzing existing cross correlation between HaiXin Foods Co and Zhejiang Kingland Pipeline, you can compare the effects of market volatilities on HaiXin Foods and Zhejiang Kingland 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 Kingland. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Zhejiang Kingland.
Diversification Opportunities for HaiXin Foods and Zhejiang Kingland
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HaiXin and Zhejiang is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Zhejiang Kingland Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Kingland 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 Kingland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Kingland has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and Zhejiang Kingland go up and down completely randomly.
Pair Corralation between HaiXin Foods and Zhejiang Kingland
Assuming the 90 days trading horizon HaiXin Foods Co is expected to generate 2.72 times more return on investment than Zhejiang Kingland. However, HaiXin Foods is 2.72 times more volatile than Zhejiang Kingland Pipeline. It trades about 0.26 of its potential returns per unit of risk. Zhejiang Kingland Pipeline is currently generating about 0.1 per unit of risk. If you would invest 372.00 in HaiXin Foods Co on August 31, 2024 and sell it today you would earn a total of 89.00 from holding HaiXin Foods Co or generate 23.92% 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. Zhejiang Kingland Pipeline
Performance |
| Timeline |
| HaiXin Foods |
| Zhejiang Kingland |
HaiXin Foods and Zhejiang Kingland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Zhejiang Kingland
The main advantage of trading using opposite HaiXin Foods and Zhejiang Kingland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, Zhejiang Kingland 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 Kingland will offset losses from the drop in Zhejiang Kingland's long position.| HaiXin Foods vs. Linewell Software Co | HaiXin Foods vs. Zhongshan Public Utilities | HaiXin Foods vs. Maxvision Technology Corp | HaiXin Foods vs. Tianshui Huatian Technology |
| Zhejiang Kingland vs. Do Fluoride Chemicals Co | Zhejiang Kingland vs. Der International Home | Zhejiang Kingland vs. Markor International Home | Zhejiang Kingland vs. Shanghai Shuixing Home |
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.
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