Correlation Between HaiXin Foods and DO Home
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By analyzing existing cross correlation between HaiXin Foods Co and DO Home Collection, you can compare the effects of market volatilities on HaiXin Foods and DO Home 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 DO Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and DO Home.
Diversification Opportunities for HaiXin Foods and DO Home
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between HaiXin and 002798 is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and DO Home Collection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DO Home Collection 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 DO Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DO Home Collection has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and DO Home go up and down completely randomly.
Pair Corralation between HaiXin Foods and DO Home
Assuming the 90 days trading horizon HaiXin Foods Co is expected to generate 1.19 times more return on investment than DO Home. However, HaiXin Foods is 1.19 times more volatile than DO Home Collection. It trades about 0.25 of its potential returns per unit of risk. DO Home Collection is currently generating about 0.1 per unit of risk. If you would invest 380.00 in HaiXin Foods Co on September 1, 2024 and sell it today you would earn a total of 81.00 from holding HaiXin Foods Co or generate 21.32% 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. DO Home Collection
Performance |
| Timeline |
| HaiXin Foods |
| DO Home Collection |
HaiXin Foods and DO Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and DO Home
The main advantage of trading using opposite HaiXin Foods and DO Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, DO Home 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 DO Home will offset losses from the drop in DO Home's long position.| HaiXin Foods vs. Nanjing Putian Telecommunications | HaiXin Foods vs. Shenzhen Hifuture Electric | HaiXin Foods vs. Tianjin Realty Development | HaiXin Foods vs. Shenyang Huitian Thermal |
| DO Home vs. Sinocat Environmental Technology | DO Home vs. Beijing SPC Environment | DO Home vs. Yankershop Food Co | DO Home vs. Anji Foodstuff 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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