Correlation Between HaiXin Foods and Sichuan Jiuyuan
Specify exactly 2 symbols:
By analyzing existing cross correlation between HaiXin Foods Co and Sichuan Jiuyuan Yinhai, you can compare the effects of market volatilities on HaiXin Foods and Sichuan Jiuyuan 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 Sichuan Jiuyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Sichuan Jiuyuan.
Diversification Opportunities for HaiXin Foods and Sichuan Jiuyuan
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HaiXin and Sichuan is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Sichuan Jiuyuan Yinhai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jiuyuan Yinhai 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 Sichuan Jiuyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jiuyuan Yinhai has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and Sichuan Jiuyuan go up and down completely randomly.
Pair Corralation between HaiXin Foods and Sichuan Jiuyuan
Assuming the 90 days trading horizon HaiXin Foods Co is expected to generate 0.77 times more return on investment than Sichuan Jiuyuan. However, HaiXin Foods Co is 1.29 times less risky than Sichuan Jiuyuan. It trades about 0.32 of its potential returns per unit of risk. Sichuan Jiuyuan Yinhai is currently generating about 0.19 per unit of risk. If you would invest 307.00 in HaiXin Foods Co on September 12, 2024 and sell it today you would earn a total of 283.00 from holding HaiXin Foods Co or generate 92.18% 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. Sichuan Jiuyuan Yinhai
Performance |
| Timeline |
| HaiXin Foods |
| Sichuan Jiuyuan Yinhai |
HaiXin Foods and Sichuan Jiuyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Sichuan Jiuyuan
The main advantage of trading using opposite HaiXin Foods and Sichuan Jiuyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, Sichuan Jiuyuan 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 Sichuan Jiuyuan will offset losses from the drop in Sichuan Jiuyuan's long position.| HaiXin Foods vs. Nanjing Putian Telecommunications | HaiXin Foods vs. Tianjin Realty Development | HaiXin Foods vs. Kangyue Technology Co | HaiXin Foods vs. Shenzhen Hifuture Electric |
| Sichuan Jiuyuan vs. Sinofibers Technology Co | Sichuan Jiuyuan vs. JiShi Media Co | Sichuan Jiuyuan vs. Yuan Longping High tech | Sichuan Jiuyuan vs. Jiujiang Shanshui Technology |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |